While I know that most on here will say that upgrading a Hyatt House is a waste.....
But consider this. When I travel for business, I seldom care if I have a suite or not. When I travel with family, I'm often either on points or staying at budget HH or HP's. And as a result, I often have upgrade certs go unused. Why not let them be used at Hyatt House? If folks want to do it, Hyatt should oblige. Why wouldn't they?
Say what you want, but having more redemption options is always better than fewer, even if they aren't always better.