Lifetime status is definitely something that people value. But only while they are chasing it. FT is full of Marriott Lifetime Platinums who stay as little as possible at Marriotts. But you have to experience that "loyalty arc" yourself to really understand how chasing lifetime status might have made you do things you regret later. (for the handful of Marriott stays I have each year, it would be far cheaper to pay for breakfast and the room I need, rather than having spent so much over time to become a LTP)

And if you can get top tier from a credit card, you can't really complain if you don't get a high upgrade % at that chain. (or value the lifetime element of Hilton status) But for the occasional hotel user, it is certainly a reasonable method to consider.