My favourite 4Points, Alofts and Elements are substantially better hotels than more than a few Sheratons and Westins I've tried.

Part of the game is the value proposition offered to franchisees. With fewer points to be handed out to elites, the hotel owner can easily save $$$ per year - this could be all the difference between signing up a new-build hotel to Element vs. Staybridge/Homewood Suites or whatever...