I am by no means a hotel expert, but it sounds like you and I are mostly in the same boats . . . I believe that double dipping is when you get hotel points and airline miles from a single stay. You "double dip" and don't have to choose one or the other.
I, too have always been price motivated when making lodging decisions, but Ozstamps post about becoming a VIP Gold changed my mind.
It caused me to stay at Hilton twice these last two weeks and I like the upgraded rooms, the smiles I get when staff sees that I am a VIP Gold, and I look forward to earning free nights in hotels.
I don't think its much hassle. But then, I've only been playing this game for a couple of weeks.
Hope that helps a bit.
-levi aka eastwest