I can't see the relevance of the CVR to this. All the protagonists are alive and there are plenty of witnesses. Overbooking also seems an entirely logical mechanism for commercial efficiency. Providing the carrier manages the situation properly, no reason to think that everyone can't end up content. The onus is on the carrier to manage. They certainly managed something in this circumstance.
Once boarded and seated there is an emotional difference. Now if you are selected the surprise factor is higher as you thought you were safe. You are also embarrassed as you know you are the loser, picked out of may be hundreds of people. Under their gaze you retrieve your stuff from the overhead and walk down that long aisle knowing the rest are thinking poor schmuck. Seems like a situation theat would better be avoided and one in which the emotional stakes have been raised unnecessarily.