I feel really bad for all of you. I know EXACTLY how you feel as we experienced the same thing last year with FQ. Just to let you know, though, they were not generous, at all, with upgrading people to deluxe resorts at no charge. If you have a great code rate and want to go to a deluxe, if they follow the same plan, which it sounds like with the calls, you will have to pay to do so. Last year we had the FQ booked for $85 per night. I think they offered us AKL for $109 a night or something like that. Otherwise, we were told to switch to another moderate for the same price. That was it. Nothing else. Also, be aware that there were some people, while we were there, that showed up at FQ to find it was closed and then walked over to Riverside to find out what happened. They had been booked into Riverside but Disney forgot to let them know. They were not happy...and I don't blame them.
That being said, our DU agent was absolutely wonderful in trying to get everything sorted out. He really made a splendid effort and even called me by phone when he realized how upset I was about this whole thing. That was reassuring. And, Disney had the same attitude towards it as they seem to have this time. "We have a team working on it and they will be in touch. Until then there is nothing that we can do about it. You will be offered another moderate at the same price. And, possibly be able to upgrade to a deluxe for a little more." Their definition of a "little" and mine were completely different. I hope Disney learned something from last year and is a bit more flexible in what they offer. Good Luck.
FQ and Riverside, though, are both very nice resorts.