That’s rough, especially after that many miles with them.
If the agent tagged it wrong and sent it to Dallas, that’s clearly on the airline. Waiting over a week and then replacing everything after five days sounds totally reasonable.
Only reimbursing the suitcase itself and not the contents would frustrate me too. Normally for delayed baggage they’ll cover reasonable replacement items, and if it’s declared lost they’re supposed to compensate up to the liability limits. $130 feels like they treated it as just damaged luggage, not lost contents.
If you haven’t already, I’d escalate beyond regular customer service. Executive relations, DOT complaint, even a credit card travel insurance claim if you used one. Sometimes the first payout isn’t the final one.
Losing a 200k mile customer over $1500 is short sighted.
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