UPDATED THIS POST AFTER SPEAKING TO HYATT:
Follow-up from above... I have 4 nights in June and have been considering the options from Hyatt:

1) COMPED 4-night stay at The Cape, Thompson Cabo (moving my current PH reservation over there and refunding ALL points)- value around $1,600 at current summer rates
2) COMP upgrade to standard suite at PH if we choose to move our reservation to later this year- value, let's call it $800 (but could be $0, since I could use SUA or comp upgrade at checkin)
3) 10,000 Points PER NIGHT for inconvenience if I decline option 1 and 2 (40,000 points total) value ~ $800

I took option 3. Option 1 was VERY generous... however, I really don't want to stay at the Thompson. I really thought they'd be a bit more accommodating to try to keep me at the PH, with a credit or something other than a standard upgrade.

Whatever the case, while frustrated they won't be open, a very acceptable resolution.