To some people, an extra $200 is nothing--they are not concerned about the value proposition but just having access to the best experiences. They might eat one breakfast in the lounge or have the concierge make them one dinner reservation, and consider it money well-spent.

I think that more people, though, look at a club upgrade charge and at least CONSIDER the value they're going to get for the cost. As anejo said, NoLa has lots of great, local food options. I assume you picked that city for your birthday blowout because you wanted to experience the city, not just a nice hotel. I'm certain the club lounge there puts out great eats and offers decent unlimited alcohol. Per the OP's original question, the food in the lounge will certainly not be "substandard", but it may not be particularly local or gourmet. If you're okay spending time in the club lounge and not out in the city, then the value could still definitely be there. Heck, if you think you and a friend might take enough advantage of the complimentary alcohol in the lounge to get "lubed up" before hitting the town, it could definitely be worth it there, too.

This is all a long way of saying that the value of a club upgrade fee is in the eye of the beholder.