So I agree with the others about this being a terrible benefit and I've actually moved from Marriott Platinum to Hyatt Diamond this year because of the lack of benefits.
However, that being said, one benefit that might be of use here is staying in an upgraded room if booking a paid night followed by reward nights. Let's say I booked 2 nights in an oceanfront room and added on 2 award nights. Could I not then be guaranteed an oceanfront room for a standard rewards redemption? Maybe I'm off, but that seems halfway decent with this change.
Also, anything new on the supposedly big Facebook announcement?