So if - God forbid - Catbad had taken Princesses purse, money, credit cards, etc, and refused to admit that they were in the room at all, then Princess would be a victim? Of course the hotel would still have no responciblity for the lost property, because they have statements that limit their liability.
You are right, you can't make everyone happy. Sometimes you don't have the right view, or bed type, or even smoking preference available. In these situations, you are correct, the guest deserves an apology, and nothing more.
In a situation where the hotel (notice I say hotel, meaning all the employes, managers, etc - not the desk clerk) gives another party a key to your room, where your valuables are being stored, because of a mistake on there part, the guest deserves more than new room keys.
The staff at the hotel should have started by saying they were sorry. They then should have sent a golf cart with the original CM to bring the keys. That CM should have loaded the cart with the luggage for Princesses family and taken them to the correct type of room (ie - non-smoking). The next day a manager should have called Princesses family to apoligize again and make sure everything had been taken care of to thier satisfaction. This is the correct way to handle a situation.
Notice I didn't include any "extras" like free nights or meals. I don't think those things are necessary when the proper service is given to take care of the mistake in the first place.
I my humble opinion this sitution was a VERY big deal. Princess could have indeed lost much (assuming like everyone else, she carried a large sum of money or credit cards etc, while on vacation) due to this situation. It worries me more than a little when someone in the hotel industry doesn't recognize it as such.
Shelly