MileKing, I apologize for the annoyance, but it is simply part of the Terms and Conditions:
"Preferred Award Nights are not subject to blackout dates, apply to standard rooms only, and are non-commissionable. All reservation requirements applicable to paid rooms from time to time (such as minimum length of stay requirements, special packages, etc.) are also applicable to award stays."
Preferences such as location, bedding, and smoking preference are not "confirmed" on paid reservations either. They are considered to be requests which the hotel will attempt to honor as they are able to do so. I am pleased that you have never had any trouble receiving what you requested as your preference.
Best regards,
William R. Sanders
Specialist, E-Communications Department
Starwood Hotels & Resorts Worldwide
[email protected]