Well, it appears Kiwi Casino have done the right thing so far. They took a while to handle my complaint, but have addressed the issue.
They changed the comps points page to reflect the correct conversion of $10=1 point, and they gave me $1,000 as a cashout bonus meaning that it had no wagering requirements or restrictions, and i could cash it straight out if i wanted to.
I have put in a withdrawal request for $500, so if that goes through, then my faith in online gambling is restored.
I will obviously have a real issue if they refuse to pay, but their vip manager said it wouldn't be a problem, so here's hoping.