I would say that it gives an incentive for people who have planned business stays at quality hotels to change their stays from SPG/Hilton for example and have their stays at HR GH and PH properties. It doesn't just mean people are going to stay at local HP's so I imagine in most cases it actually makes Hyatt profit and hopefully makes Diamonds fail to qualify with other programs so they become more loyal to Hyatt.

There are a lot of people who stay at HP's in order to earn FFN's (as I did last year but then became a big supporter of Hyatt Diamond status and now all my stays so far have been at international GH + properties) but I still think they are the minority.