Yes you should be upset, the dealer di d make a mistake. but how on earth do you sit in the 1 or 10 and not be aware of your cards and the dealer's hands at all time? it is a not uncommon mistake, the dealer sees unportected cards, and a player leaning back, he mucks without thinking.
Always protect your hand. The dealer may have made the mistake, but the ultimate responsibility is always the players. As mentioned above, getting a refund is much more than you will usually get.
https://www.youtube.com/watch?v=mTN5l1Xjrks