Was I a fool for declining offer?

I declined an offer at a large MNC firm because I was asked to intern despite my qualifications, and then gave me an offer 8 months later. I thought it was extremely disrespectful and stringing me along, and the partner of the firm insulted me for asking for a more senior position. She said my last experience was not relevant because it's not prestiguous. So I declined the offer and worked at a small firm afterward. I can't say it didn't hurt my career because the small firm literally had no name and leverage.