Sounds like you had a good time. That's good to hear. Yeah, I think the cold shoulder may have been due to the American military think more than anything. Neither the United States nor the military are held in high regard here, especially among francophones. I often speak English in those same bars with English-speaking friends, and haven't ever had any trouble.
Yeah, I like Distillery too. Those big mason jars full of booze, get you drunk fast
The small venue atmosphere is very typical in Montreal, there are a lot of places but most of them are small.