No. The way I read it:

120k Amex = 5 nights cat 3 hotel + 50k airline miles
or
140k Amex = 5 nights cat 4 hotel + 50k airline miles

Cat 3 hotel is 7k SPG per night, and cat 4 is 10k, right? With 5th night free, it means:


56k Amex = 5 nights cat 3 hotel (28k SPG value)
+
64k Amex = 50k airline miles

or

80k Amex = 5 nights cat 4 hotel (40k SPG value)
+
60k Amex = 50k airline miles


I would say this SPG package may only make sense if you really need those 5 nights in that hotel which has very expensive cash rates for those nights, and you don't already have SPG points.

Otherwise, if your main goal is airline miles, then Marriott packages are a better deal.