Sure, I completely agree with you.
But for most people staying on points, the cash rates aren't relevant. I know I'm far from the only person comparing the PH (top-tier Hyatt property) to the St. Regis (top-tier Marriott property), without ever thinking about cash rates (since they're all ridiculously expensive anyway).

Re. higher-end clientele - I would expect most guests to be staying on points at these properties.