I can see the logic, fairness and justification for allowing point stays to be switched to FFNs.
FFNs are announced on short notice, nothing wrong with that.
People typically book well in advance, especially for awards. In other words, most people requiring award stays in October, November ... even up to March and beyond would have booked them by now, on pts.
If one cannot switch pt awards to FFNs, those people will not be able to participate in the promotion and will do fewer revenue stays at Hyatt during the period.
This defeats the very aim of Hyatt in running the promotion.
Moreover, the customers Hyatt will lose out on in such a scenario will be its loyal core.
Hence, the logic, wisdom and necessity of allowing pt awards to be switched to FFNs.