So you admit it was a small agency, in other words, next time stick with a Hertz, Avis, National, Alamo, etc. In any case you got a car after 2 hours. I'm not denying it sucks, especially with a family, but it happens. Ever had a flight delayed for 2 hours? Happens all the time.
Don't all those companies follow the same practice? I've used most of them and have issues all the time (though in most cases they have some car available, just not what I reserved).