No need to resist at all, you're absloutly spot-on.
To the extent that this incident was the result of failure on the part of CO then the pax should definately be compensated. And I don't see that there was any real failure on the part of CO.
But what compensation though? Much of the world lives in places where you get kids ****ting in the street. I live in China and in addition to said kids in the street a trip to a public $hitter is an eye-opening (and nostril closing) experience. It doesn't do me any harm though.
Clearly not the best of flights for the pax onboard, but seemingly not one where an of the pax actually suffered any real loss or injury/illness.
$hit, literally in this case, happens. Throw them $500 (oh, they already have) and tell them to buger off.