I certainly believe there are issues with some local partiers or drug enthusiasts, but it seems unlikely to me that people who are planning a major illegal event or to trash a hotel room are checking in with elite status and legitimate ID.

In any event, the big problem here is that the hotel doesn't disclose this policy so you get taken by surprise at check in. What's worse is that they knew in advance of arrival that there was a conflict with the secret policy (as acknowledged by the front desk agents) and didn't do anything to warn the guest before arrival.