As mentioned above, the star rating is not really a quality rating so much as it is a facilities rating - does the hotel have a pool, on-premises restaurant, business center, etc. If the hotel has a lot of these things, but is somewhat in need of refurbishment, it can still have a high star rating.
OP's remarks about being 30 minutes from her desired location and most people paying less than she did do not reflect my experience. I do my homework, allow about a week to bid, start low and step my way up, using free rebids if possible. OP - if you can tell us the city and country, the hotel, and where you wanted to be, we can comment more intelligently about whether your complaints are justified or if you can use Priceline differently to better suit your needs.