The wife and I were at the Kauai Hyatt last summer, and our room was less than perfect. It needed new paint, and the bathroom was less than perfect. The bathtub had rust stains, the doors were scratched and needed paint.
There were other "minor" type problems, but definately not the high quality product I would expect for the price. Made me wish I would have tried the Princeville.
By no means was this enough to ruin the experience as the best part of Kauai is outside of the room.
BTW I had no status to get a better quality room.