I have mixed feelings about this property and the "benefits for PLT members. I have been there for off and on through November and December, and have stayed there quite a bit in the past. I have learned to NEVER expect a suite upgrade (and I have never received one). I have, on rare occasions, received an "upgrade" to a higher floor, but only when I asked at check in, and the rooms are the same. In some ways, the higher floor rooms are worse, since the elevator situation can be terrible there with long waits for the higher floors.
The lounge is ok. It is usually packed, and has no hot food, but you can grab a bagel and coffee. For some reason the fancier coffee machines are broken more than they are working.
The gym has a lot of equipment, but it usually packed.
The oddest part for me is the seemingly random welcome gifts. Sometimes I have returned to my room to find fruit, cheese and even wine, other times just a bottle of sparkling water, though usually nothing. It is nice when it happens, but if I value anything in a frequent guest program, I like consistency and knowing what I will or will not received, and there is not rhyme or reason to what I have or have not received at this property.
I don't think any if these issues are unique to this hotel. I have also stayed at the Westin Times Square, and, again, never discerned any upgrade. At least the Sheraton has a lounge.
For New York, I am starting to prefer the Hilton at Times Square, where I always get a free hot buffet breakfast as Diamond, and a much larger room.