OP Here....I couldn't find this thread when I got home, so that's why I didn't update sooner.
Anyway, We finally got our bags at 2am. I told my husband that next time we arrive after 8, we'll pick up the bags ourself. He thinks this was all no big deal (of course he wasn't the one staying awake waiting for the bags).
I do think that the guy on the phone was just not telling me the truth that the bags were 'still at the airport' because it just didn't make any sense at all, and I think there may have been a language barrier in play as well.
I was just disappointed because we've not ever had any problem like this is in the past.
If you had everything you needed in your carry-on, why just not get your luggage in the morning when you woke up? I wouldn't spend half the night waiting for luggage to arrive.