Though I've heard anecdotes in the past about "cost of cleaning" being a reason not to upgrade people/offer a suite on points.... that seems crazy. Even at 1cpp reimbursement, 50K points is still $500. If it took two extremely well paid housekeepers 4 hours to clean a room on a single night stay, that'd still only be ~$160.
Now a lower tier hotel that can only charge 24K for a premium suite... maybe that makes more sense. But still kinda seems like a poor excuse.

The trend seems to be that more and more premium rooms can be booked online. Less than a decade ago you'd have to call the hotel to get pricing for premium suites. One of my very first Hyatt experiences was in ~2012 at the GH Seattle. I asked about the Onyx suite and was scoffed at. 3K a night and they'd rather it go empty than book it at a discount. Nowadays $650 gets you the room online.

Just a couple years ago the Muraka at Conrad Maldives was touted as $50K a night. Now you can nab it for 1/5th of that. I imagine in a couple years it'll be even less.

I suppose there are still some markets where discounts/comp upgrades don't make a lot of sense, but I feel in general that kind of VIP exclusivity is going away. This from someone who has stayed in the GH Kauai Presidential Suite 3 times now, and is not by any means rich.