I won't let Priceline choose my hotel. I want to know where I'm sleeping, and I want to choose my flights, for both business and leisure travel. To me that is worth the extra money, and the points, status, and all the rest are just gravy. When I was in college I didn't think twice of staying at a $20 a night Motel Six, now I wouldn't go near the places.
So while Priceline can save signigicant money, giving up any choice of where you are sleeping that night just doesn't do it for me.
Rental cars though is another story, I love priceline for rental cars. They would only use what I would use, airport rental agencies, so for rentals I think they are fine, though there are many times a better deal is had dealing direct with the car agencies.
They also have a very nasty habit of double charging for the car rentals, it's always credited back, but it's a pain to deal with.