Thank you for the tip, I stopped checking long ago, and chalked it up to "just another points limitation".

Now I have to retract my previous opinions, and admit that SPG DID come through, and did enable use of regular amount of points for regular rooms. No catches, no games. I booked the room and canceled the higher points reservation.

So, in the end, they turned my bitterness and disappointment into higher appreciation of SPG. On odd occasion, it might require some gentle (or not so gentle) push, but it will come through.