I had the same reaction when I heard about this practice from a friend, and was *sure* that I hadn't seen anything to this effect in the fine print when I booked a room. Unfortunately when I went back and looked closely, it was indeed there.

FWIW I'll actually be at the LMKL on NYE this year with my wife and another couple. We are planning to take in the festivities (since we're paying for it anyway).