Cheap rates through Priceline (and through some other agencies) are cheap precisely because they are nonrefundable. As consumers, we are taking a measured risk by purchasing hotel rooms in this manner. Hotels accommodate for that.
If you buy a plane ticket for $200 due to careful searching, and the person next to you pays $1000 for a fully refundable ticket, do you expect worse service because of that? Certainly the person next to you might get more FFM, but I doubt anyone should expect a bad attitude from the flight attendant because of his cheap rate. The same applies to hotels.