I spend a lot of time reading these boards but don't post much. I have noticed a trend on these boards. People judge like crazy if you ever bring up compensation or complaining to Disney in any way. It can be valid but people on here don't care. I have had good luck at Disney over the years. I have never had to complain but I would not hesitate to complain if it was warranted. In your situation, it is warranted in my opinion.
Anyone who says they wouldn't be upset if their baggage was broken is lying. When you hand over your baggage to Disney, you expect to receive it back in the same condition. This doesn't sound like normal wear and tear to me.
The same thing goes for upgrades on these boards. I have been to Disney 8 times and each time I have asked for a free resort upgrade and was given it. Every time. Sometimes in the form of a preferred room, and in a couple of instances, we were upgraded to a deluxe from a Value or Mod. People on here will tell you that it is tacky and cheap to ask, but if that were the case why does Disney do it for me with a smile, each and every time?
If I were you, I would contact
guest.services@disneyworld.com. This is the email address to Guest Experience Services. Be sure to include a phone number and someone will contact you.
Sorry you were treated so poorly on here.
HTH.