I don't see any problems using points for lower end hotels. It's not always about maximizing cpp. If there's no way I'd pay $200+ for a nice room in a given city, then it's not a valid comparison. If I could have booked a decent non-chain hotel for $100, then it's the comparison between that and the points options. I factor in location, breakfast, internet, etc, then choose whether to book some hotels.com revenue room, or to use HHonors, Club Carlson, PC, etc to book a room.

Sometimes, the cheaper hotels are actually the "nicer" ones Hyatt Place often has 2 beds + the pull-out bed. Hyatt Regency Vancouver only has 2 beds per room - no pull-out beds or sitting areas. I also got breakfast at a Hyatt place