I redeemed 35k points for the Embassy Suites Manhattan a few weeks back since I wanted to stay at the Freddies hotel. Paid rate was ~ $300.

Seemed about right to me.

I'd say anyone less than a Diamond should use their points when they can. Diamonds should extract maximum value, as they can get award availability.

But you're doing pretty well if you can get about a penny a point, IMHO. There are certainly awards out there that exceed this threshold, but that's my rough gut for a good value for points.