Great story! Thanks for taking the time to post.
Most of us, have in some way (even if not from priceline) made the progression of being willing to pay more for better recognition and benefits. And your point is a good one - ultimately this is good for Marriott, and at the same time we feel valued and recognized.
I've spent a good deal of money on Marriott for business and personal stays in 2012. But I have definitely benefited. Yesterday I checked in with my family at a full service Marriott in San Antonio, Texas, right on the Riverwalk. I chose to pay more than I could have gotten away with paying at another hotel or even a non-FS Marriott property. At check-in we were upgraded to a fantastic suite on the 34th floor.
So yes, we both win. And you're right - that's what good marketing does - makes us feel valued while being willing to spend more.