Rut Dog:

Their "affiliated" hotel to which I was walked (or cab'ed) was considered "luxury" so I never a WJ room. However, the clerk did mention that the new place was a very significant upgrade so I guess what they had in mind for me at the WJ would have been a closet as well.
The other guests that I saw there were not quite as scary as you seem to have encountered. Perhaps they have cleaned up their act a bit, but it's still not all that swell of a place. I don't know as I'd do the WJ specifically again.

As for airlines, this was a Delta stay but I think all of the participating plans are available. IMHO, this scheme is not going to succeed in the long haul though.