Yeah, the “I’m sorry you feel this way” response really irked me too. There are so many different ways to respond that would have been more appropriate and conveyed the same message.
The thing is that having a lot of people working in corporate environments, where you constantly need to be political and backstab others to achieve some task you've been given, this is the norm, so for many this is normal, the type of stuff where they say: I'm just trying to be helpful and constructive, but for anyone not having time for this corporate double-speak, this seems rude and condescending.