Not sure I've even seen math like that before. It really made me laugh.
If I have to stay in hotels, I'll stay in Hamptoms or whatever. If that costs me $20 more a night, then for 20 nights that's like an additional $400 over the course of the year.
When I stay at the Waldrof, I'll pay $189 for a room, and get a suite that usually goes for $600 or more. A night. That's a savings of $410 a night, times five or so nights, so I spent $400 to save over $2,000. Spending an extra $400 for the upgraded room those other nights is way more then worth it. In my opnion, it is very much worth it to earn status.