Travel Packages are indeed the best way to leverage your points' value. Category 5 hotels in particular, though they may not suite your desires.

If you aren't in a rush, I strongly suggest waiting to see if a matching promotion springs up through one of the airlines again. In the past, US and DL have both had various promotions where they will typically post a 50% to 100% bonus on transferred miles. Therefore, instead of getting the 120K miles that will come with these Travel Packages, you might get 180K or even 240K miles instead. No guarantee they will spring up again, but I'd put my money on it that they will sometime before the year ends.