We have apologized, admitted mistakes, and made tremendous internal change to move on for the better. We would not do that or even post here if we didn't care.
The offer of a free year of hosting is nonetheless a paltry joke. The high road here is to acknowledge that customer may choose never to host with you again and still go above and beyond in attempting to make it right to them, e.g. by offering a full refund for the last year of hosting they'd paid for or the like.