There is no doubt that Ian has been treated appallingly by First Choice. It was 25th June when Grahame alerted the forum to the situation re. FC pulling out of Plakias for 2005. See
link.. To take your bookings in July and then admit you wouldn't be told until next year is unforegivable. Have you thought of writing to the Travel sections of the Saturday Telegragh or Times (or similar in other papers) to shame FC into a response. I might even do it myself.
John R and I were lucky in that we were alerted early by the forum and were then pro-active in getting our money back. I suppose you were a little bit lucky in that your surfing did eventually alert you.
In terms of FC talking about "the next resort along", I don't think they feature any other south coast resorts on Crete! You wouldn't be best pleased with Malia or Agios Nikolaos I suspect!!
I don't think you will match the FC prices. I paid £30 pp more for the same accommodation with Olympic in May and John R has reported that he is paying significantly more "going independent".
I hope you get there next year.
Mike