This is really very subjective and depends on numerous factors including ones travel patterns, expectations with regard to accommodations, single, couple or family, frequented destinations, what price point you can afford, etc.

For me, single, travel a lot internationally, prefer very nice full service hotels, and while I would like to pay under $200/night for these, sometimes I am paying in the 200s and 300s (USD). So I value points a bit higher than most and generally use them for the hotels that are outside my price range. I usually get at least 1.5¢/point and sometimes as high as 4¢/point. Paris, Moscow, or Hong Kong (JW) which regularly range in the 400s and up to $1000/night I would only stay in these hotels using points, unless it was perhaps for only 1 night. Now travel is my passion, and I don't frequent the family type destinations like Orlando, etc. I also avoid major school holiday periods when leisure family travel is in full swing. In many cases I can pick and choose my travel dates based on seasonal weather, rates (stay in London Thursday-Sunday for weekend rates), and avoid peak travel periods.

For others, they may have no desire travel internationally, or visit NYC, where rates are much higher and the rate of return on using points is also better. Or perhaps they prefer SHS or RI for the added room for their families. Others may like CY for the free WiFi, etc. The point is one size does not fit all.

Quite a few MR members here on FT, are fortunate enough to earn many of their points from business travel and are then able to use points for most, if not all, of their leisure stays.

On the flip side, some of us (like me, who I think are a minority here on FT) do mainly leisure stays and have to pick and choose which stays to use points in order to minimize our cash outlay and maximize the return on our points usage.

My suggestion would be to pick a few, half dozen if possible, destinations you want to visit over the coming years and compare the cost for of your visit at the appropriate time of year, and then calculate what the value of using points would be. For each of these properties divide the total cost of your stay by the number of points required for the same stay; this will give you your point usage rate of return. My advice would be to save the points for places you want to go that have the best return. This will also help you determine what the best value for points are based on the multitude of factors including your single/couple/family status, preferred destinations, activities, hotel types, season, etc.