Tomorrow they will rip out the ceiling as well...
Having a bad attitude about it won't help much, so I just let it go after around the 24 hours. I was pretty upset for the first few hours for sure, and then I kept myself busy with talking to the insurance brokers, the clean-up crew and the insurance adjustor.
At this point I know a lot more about acoustics and electronics, and I know which people have excellent experience and knowledge in the field (from seeing their work on these fora and talking to them about this stuff around a year ago on the phone). I'll just take whatever the adjustor and my builders figure out is the appropriate amount needed to repair and/or replace the damaged work and items in this previous room and use it toward rebuilding things slightly differently.
Certainly a lot more will come out of my own pocketbook since I'll be changing some elements that weren't damaged, such as the screen, lens type (2.35:1), seating type (movie seats), etc., but if I don't do it now I won't have a chance like this again most likely until I move to another house I think. Most of the other changes will likely be purely aesthetic and acoustic; there will likely be replacement of walls, ceiling, soffits and room treatments. I'm sure things will be moved around, perhaps extending the room in some places or making the soffits slightly different, but the basic structures will be going back into place, including the soundproofing of the walls.
The acoustic treatments are covered in my policy as part of the room; I'll be switching types of treatments from diffusion to more absorption around the entire room most likely. I'll have to see what Dennis advises for my room.