A bad review can cost a hotel much more than a few hundred bucks compensation. Many hotels proudly post their tripadviser ratings, so they are aware of its power. Tweets come and go, but bad reviews hang around for years. However, I think it's fair to give a hotel a chance to make things right before posting a bad review.
I think status does matter. If you stay at their chain alot, they are more likely to help you than if you only make an occasional stay. So if you've got it, flaunt it.