It doesn't really cost much to sue, and a case so clear cut as denial of public service could be handled Pro Se: one would need paper trail, copies of letters sent, good faith attempts made to resolve the matter, and a proof that the benefit was denied, along with proof that one is PR , which entitles them to benefit sought.Many people don’t have the money or the time to sue the government especially when you could sponsor someone within the same period.
I understand that most average individuals would want to avoid litigation at all costs (which is one of the reasons why they are being so often mistreated). But OP may or may not have a choice to sponsor his wife. I don't know what are the costs of treatment for someone on dialysis (presumable she will need it through the rest of her life), and I don't know if having the medical condition she has would make her inadmissible (due to costs of treatment). This is Something OP will have to figure out. And if there is no choice to sponsor her, then bringing her to Alberta and subsequently fighting for his spouses rights might be his only option to live with her in Canada.