Poker hand on my mind

OK, just got back from Salzburg, among many other things I went to the casino last night and played some poker. One hand in particular sticks with me.
The table's a mixed group, 7-handed. Twice have I have watched one fellow get all-in when he had the other opponent absolutely crushed, and the other guy sucked out on him. One time a opponent hit a two-outer on the river after being put all-in on the turn, and the second time the opponent actually hit a runner-runner full-house. I don't even know what you call that, when the opponent needs two specific cards on the turn and river and hits them both. I call it "time to call it a night" but I'm sure there's a more technical term for it.
So anyway, I'm playing 2/4 NLH, the only game available at this swanky place, and I've got maybe 120 in chips in front of me. I look down at AKo (that's Ace-King off-suit) in about 4th position. The aforementioned guy in 1st position limps in for 4 along with the fellow behind him, I raise it to 12, everybody folds, and they both call the 12. Flop comes Jh-4c-Th. I now have two over-cards and a gutshot straight draw. Not particularly great, but not terrible, and even if one of these guys has paired the board I probably have 10 cards that will give me a better hand (any A, K, or Q). Both players check, I c-bet out 30 (about 2/3 of the pot), unlucky bastard smooth calls, the other guy bails out.
Turn is a rag, something like 5d. Unlucky fellow checks. The only thing that really makes a lot of sense here is that he's chasing the flush or less likely a straight of his own. I figure if he's chasing the flush, I'm gonna make it totally unreasonable for him to do so. I bet out 60 this time, which is a bit more than 1/2 the pot (leaving me with only about 35 in front of me), and he...calls. So this doesn't make any sense, unless he's just willing to chase the flush at any price. I mean, I know not everyone thinks about odds and all that, but I saw this guy make spectacular shoves before and get screwed, so I have no idea what he's doing. River card is a very unfortunate Qh, giving me my straight, and most likely giving him the flush. He looks at me and says "I put you all in". At this point it's about 35 more to call, and there's already about 200 in the pot, which means that I kinda have to call, even though I fully expect to get beat. I shove my chips in and patiently wait for him to show his hand. Eventually he turns over two tens, for a flopped set. I guess he misread my immediate facial expression (confusion) for defeat, but I very promptly turned over my AK for the rivered straight. He gets a completely disgusted look on his face and starts going off about folks sucking out on him on the river. I said something like, "sorry man, but I had to make that call".
Here's what really confuses me. Thinking about this from his perspective, what should he have assumed I had?
Pre-flop - I've been playing pretty damn tight at this table, so I gotta have something pretty good to be raising on top of two limpers in middle position here - at minimum a med-high pocket pair (like maybe 99) or else two paint cards like AK, AQ, AJ. When the flop comes with two high-ish cards and two hearts and I c-bet, and he's flopped a set, then by far the best thing for him to do is to raise me. Actually, he probably should have bet out in the first place, but check-call is about the worst play he can possibly do. Best to just bet out or check-raise after the flop and put the pressure on me to decide if it's worth it or not. Maybe I've got a flush draw, in which case I'll either call or fold, maybe I've got two overcards, in which case I'll either call or fold (but more likely fold), maybe I've got JJ and I'll re-raise him, and maybe I've flopped a pair or already had an overpair, in which case I'll come along like a lamb to the slaughter. If he just check-calls he's really got very little idea, particularly when it's a c-bet. But, I'm guessing he wanted to milk it - not a good idea with a textured flop (two connected cards and two hearts). Same goes for after the turn when a completely unconnected card showed up - he should have just put the pressure on and forced me to go all-in or fold right there. Now, admittedly he probably thinks I've got an overpair here, so maybe he's just letting me hang myself with my own rope, but a set's not enough of a powerhouse hand to get away with that, unless you've got a completely unconnected board and you've got top set, and even then you're living a bit dangerously.
The final big screwup is when that last card shows up. Puts three connected hearts on the board, and should definitely be a warning sign. I could realistically have a few hands that just connected, like QQ or AK or even AKh for the royal flush (I didn't, but I could have!). So, at that point, perhaps he should have played it ever so slightly safer and just checked, figuring that he'll call if I push all-in. Or, to put it another way, what could I possibly have that would mean that I would fold to the final all-in bet (nothing that I can think of) vs. what might I reasonably have that would beat him?
So, to summarize, he played that hand terribly. I think he got a lot of sympathy based on what other folks had seen before, but anyone who seriously thought about it would probably also conclude that he did a bad job of it.
Incidentally, the session went really interestingly. I started with 125 in chips, at one point was down to about 60 or 70, mostly from just giving away the blinds when the cards were not coming and from a couple of times where my promising pre-flop hands went nowhere. I lost a quick 20 on AcQc when the flop came down with Kc-xQs-x and two cowboys started getting into a pissing match (but at least I got out of the way quickly, needless to say I would have lost it all if I had stayed in) and was starting to wonder if I wanted to try to use my ATM card in Austria or if I should just call it a night. With about 40 or 50 left in my stack I limped into a pot in 1st position with Ac7c with about 5 other players, the BB popped it up to 12, three players call including me. We see a four-way flop of A-3-7 rainbow, BB checks, I push all-in (less than the size of the pot, but the only thing that would make this a bad call is if someone happens to have 33 or 77, and hopefully someone has Ax and wants to come along for the ride), everybody folds to BB, BB calls me with KK, meaning that there are exactly two cards remaining in the deck that can save him, or to put it another way making him about a 10-to-1 underdog. Amazingly he does not suck out on me (this guy had been on a serious suckout roll and I think everyone was actually expecting a king to show up), and suddenly I'm back to about my starting stack. That and the hand I described earlier put me at about 325 when the casino shut down at 2:30am. I got there at about 12:30am so it was definitely a good session!
I just love playing live - it's so much more fun than playing on the computer. I met a young guy there who lives in Munich, he said he comes down once in a while since it's only about 75 minutes away. I might have to start making Salzburg road trips more often.