Thank you for that post, Bug. It's basically the anatomy of a disagreement and seeing both sides as an outsider is helpful.
In my situation, I strongly suspect that if XW wanted the pallet furniture and I objected or said I didn't want it I would get tabbed with having to have everything my way and not being flexible. Similar arguments over similar issues occurred in the past. And by her definition from time to time, a "compromise" would be me giving in and letting her get the furniture.
Nowadays, I think I have better tools and understanding to work through stuff like this -- even though it does take a breath or two.