I looked at a few properties, and this is a huge win in my books.

The price for the same rate on Hyatt is equal to the price on MMS, and sometimes that's actually cheaper than booking direct with the property, plus the addition of a "Smith Extra".
You earn redeemable points, EQN and base points that count towards lifetime status on many top properties.
So essentially this is a bonus with no opportunity cost for earning Hyatt nights and points.

Redemptions are poor value, sure. But I don't think Hyatt has ever led anyone to believe otherwise, and given the arrangement MMS has with the hotels they market, I think it was obvious to many that it wasn't going to happen.
But you wouldn't judge a program by its worse uses, you judge it by the sweet spot (or a sweet spot that you could reasonably take advantage of).

I'm sure they'll slowly integrate more hotels into Hyatt's system; this is just the first day.