I'm sorry to disagree with you John, but I don't think the response was that bad. Whilst it stuck to "corporate" theme, it was at least one better than a cut and paste job (ie. written by a human, not by a cut and paste script).
One of the issues here is you complained about what happened, but didn't give them a clear understanding of what you expected in return (ie. a proposed "solution"). A statement that you would like a refund of your complimentary upgrades or similar would have helped them understand what you wanted and given them the opportunity to provide that. Instead, it reads more like feedback rather than a request for compensation.
FWIW I think unless the aircraft when you booked was a 738 and then was subbed to an E190, you are unlikely to get very far with either JB or the ombudsman. But if you have the time, it costs (almost) nothing to pursue. I think the best you'll get (eventually) might be the free upgrade returned for future use.
Keep us informed how you go.