In my well over 100 Hampton Stays in the last 18 months, I have only used this twice. Both times it was due to a very bad experience with a desk clerk.
Both times, I simply stated that I was invoking the 100% guarantee. The room charge was credited, no questions asked.
There have been MANY other instances where I have either complained about minor problems or simply pointed out deficiencies. Almost every time, I have been offered the 100% guarantee. I have declined those times. I would not feel ethical taking a freebie for a trivial item. I bring this up becuase I think it shows just how serious they are about the guarantee.
I have no idea what they would do if someone tried to do this after a 7 night stay, but more than likely they would offer the guarantee for the nights affected.
This is only my opinions, but I would guess that a person who took advantage of this option too often would be asked to stay elsewhere.