My quick take -
I think it's a great option, but one that I'm not likely to take advantage of very often.
However, if/when I do use it, it will be really nice to accrue nights and points.
For example, 7 nights at $300/nt: That's a significant chunk of qualifying for status, and $2,100 spend would earn 13K points. And if I was going to be over 60 nights for the year, then that's most of the way towards getting an extra TSU or 10K bonus.