I'd snag those cheap DL tix if the trip plans are firm.

Looks like you have a good use of points. I'm guessing you *could* peruse non-SPG options and maybe find something that beats $350/nt., but even if you're finding a decent bed for $200/nt., you're still in the 3cpm range after taxes which is pretty good for a domestic U.S. stay.

And there's something to be said for being 3 blocks from your actual destination...

Personally, I value 30k SPG more than 50k air miles, so unless I had a near-term high-impact use for N&F (e.g., top-off for an int'l premium cabin award) I'd probably go with a straight hotel award.