If they end up cutting costs even more (to become more like, as the article says, the 'spirit airlines of hotels') AND thereby manage to reduce the room rates, I would be OK with that.
The only reason I stay here is because of the location - not for the service or the cleanliness or the food or anything else imaginable. For me as long as they are able to provide a clean bed and shower, remove whatever else they want to remove and reduce room rates (and points redemptions), I would be OK with that.