Should you avoid them?

If that's the reason you pick a hotel room, yes.

Is it unreasonable for them to charge that?

No it's not, as I'm sure they made it clear. It's your choice. It's no more out of line then them selling cans of soda for $2 when the grocery store down the street has a 12 pack for $4. People that freely pay $25 for two eggs and two slices of toast don't really care what the internet costs.

For most people traveling, it's not an issue. Business people are more and more traveling with their own internet, and not everybody shows up needing eight connections (and if they do they probably have a travel router they use).

Personally I don't care what they charge. In Times Square I'll easily get a strong fast 4 G signal in the room.

The W's business is not gonna change one way or the other based on their internet costs.