Understand your point about the lines.. However, I do think if you're making the trek, the lines are worth it to get up there for first light (depends on season and what time the sun will rise). I didn't wait in line too long and was one of the first up there.. very cool to see.

I think you get very mixed hotel rooms / hostels, but YMMV. I paid $40 bucks also for what ended up being a "fine" room and no breakfast given how early we went.