It's wrong that you were not given back your money! And I agree with you that it is considered THEFT! If the flight gets cancelled, it's the airline's responsibility to book you on another flight and you should have not begged for it. That agent did not do his/her job!
Even if the ticket was non-refundable, they were still not able to provide you service for the ticket you paid for. So they should given you back your money so that you could have booked a flight with another airline.
By the way, did you just speak with an agent at the counter or did you try to call their reservation hotline?
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