This has been covered repeatedly.

Hotels receive something close to the average daily rate when full and peanuts when not.

This is the price of admission to being a Hilton franchisee and therefore getting a revenue premium and avoiding OTA commission for a large % of room nights.

Properties rarely discriminate against points stays. Upgrades are totally at the hotel's discretion. Being a repeat guest (with or without status) matters more than just having a shiny card.