This has nothing to do with elite benefits. If you were to stay at a residence inn that offers free breakfast to all cash paying guests and the residence inn said "sorry, no breakfast for you, you're on an award stay" would you be OK with this? I realize this is brand standard vs hotel standard but if breakfast is included as an amenity for all cash paying guests then excluding award guests is a very slippery slope. I get that the hotel is allowed in the T&Cs to do this, but I agree with the OP that it doesn't feel right. What next? "oh, you're on an award, you have to pay extra for the pool"