I think one needs to separate out two things here and consider them that way:
1. It is perfectly possible that restoring an island on the live servers is too risky and could have knock-on consequences.
2. If the bug is rare then it is perfectly reasonable that BB compensate properly anyone hit by it rather than restoring their island.
However, the big problem here is that the compensation described (I have no reason to doubt it) is ridiculously poor. To get to level 49 takes vast amounts of resources and time, which can only be compensated by a huge amount of gems if the player is to re-establish a new island within a reasonable timeframe.
If the bug is that rare, then BB should be throwing huge amounts of gems at whoever it hits. The player may have to start again from scratch, but at least they would feel BB cared about them. The reset resources offered that have been shown on this thread are nothing short of an insult.