I'd welcome this as long as other award pricing isn't devalued or otherwise affected. Use cases could include booking ocean view rooms at popular beach resorts (I bet you many of us posting in the GH Kauai thread would be willing to drop an extra 5-10k per night to guarantee an ocean view at booking), larger and/or higher-occupancy rooms especially at hotels without many suites, and the rare case where a premium room might be better than the standard entry-level suite (e.g., the premium king at the PH Istanbul which comes with a hammam).
I'd go one step further and say that allowing TSUs to be used for these room types, i.e., permitting it to be used for an upgrade to any room type up to a standard suite, would be welcome as well, again provided that their current benefit isn't devalued.