I’ll echo what several others (above) have written; yes, absolutely. The cost of acquiring hotel points can be zero so any redemption is essentially a free rebate.

As others mentioned, I’ve had some great redemptions. As you wrote, I mainly STAY (and earn points) in “average tier hotels which usually cost between $129 to $200 a night”. I use my points for those occasions when I chose to stay in an above average tier hotel. For me, that’s often a ski vacation when almost any desirably located lodging will be very expensive. I’ve used points at the Hilton Resort Whistler (British Columbia), was assigned the exact room I requested and got ~a penny per point in value, pretty good for Hilton Honors. I’ve used points at Grand Hyatt Vail and Hyatt Place Park City, where all rooms are “good” (if not better) and got ~3-4 pennies per point in value.

That’s one of the paradigms for loyalty programs, earn on inexpensive flights and stays, burn (redeem) for expensive stays. Earn miles on short domestic flights, redeem for international long haul (biz if possible). Earn on average tier hotel stays, burn on 5 star hotel stays.

I agree that hotel points might be better than miles, way fewer blackout dates and less common dynamic pricing. I’ve never received a lesser room or been treated any differently when redeeming hotel points.