In the US I always get the water or points. Always take the points. The water isn't even a "fancy" brand. A couple years ago you got to spin the wheel and the prizes were water, cookies, points and maybe something else. I prefer being able to choose the points even if they aren't much.

The thing you should get as an elite with IHG is upgraded rooms. I'm almost always upgraded. Just make sure to ask what the upgrade means if they tell you they are giving you an upgraded room. Sometimes its a higher floor - DH prefers to be on the lower level when travelling for work so he's near his car and doesn't have to wait for elevators.