This is so nice to have someone document the process.
I had a very similar "free trip to Veags" certificate once, and eventually gave up because there were three sets of "fees" to pay and a lot of quick deadlines that I didn't realize. I was young and not in the mood for a fight, so I gave up and was out $60. They won. Had I completed everything by the dates and paid the fees, I would've had a three day, two night Vegas vacation for two (with airfare) for about $150 total. A bargain, but I missed one "expiration date" and folded.
The only part of this that seems really wrong is that they advertised the outside cabin on the postcard and you are getting an inside unless you upgrade for a fee. THAT seems like the most falsely advertised thing, and I still think it's smarmy they won't take a cc, and instead insist on a bank routing number, etc. They are counting on you giving up, after all the hoops, like I did.