The "bottle of water" benefit leaves a bad taste in my mouth. While at the Venetian, the Priority Desk was closed so I had to check-in at the main desk where they informed me of the free water, but didn't physically hand me a bottle. My wife interpreted this as the bottles in the room being free, only to find out during check out that they actually cost $10 each.

On checkout day, I explained the situation to the (now open) Priority Desk and they thought I was an idiot for making that assumption and declined to waive the $20 charge (two bottles of water). They said that the check-in agent should have handed me the water bottle during check in, and I had no way to demonstrate that they didn't.

Not only is the bottle of water a backhanded compliment, it regularly creates confusion and disappointment. I imagine it frustrates more IHG Ambassadors than it impresses, but it creates a revenue stream where some guests get fooled into buying $10 water bottles.

But to your point, the limited perks are definitely "SIP" (slightly important guest) instead of "VIP" treatment.