They mostly fixed that with a devaluation of most of the cat 2 hotels. Also many hotels were supposed to go down to CAT 2 and of course that never happened sigh ... many 100 dollar hotels cost 10k points now which makes no sense.
P.S you are looking at the list so you think the cat changes were normal, but look closely many properties never went down a cat and especially cat 3 and 4 hotels.