I'm of mixed feelings on this subject.
First off, I want to establish that the benefits are NOT free. I pay a lot of money every year to hotels and airlines. Last year I probably spent well over $150,000 on airlines and hotels. I didn't spend too too much on car rentals.
I most certainly chose which hotels I stay at based on their affiliation. It factors into the room cost, if I have to pay for a suite, or if I'm going to get upgraded -- this is why I think IC is the best chain to have status at.
When I fly, I factor in the cost of lounge memberships and paying for premium classes versus using my status.
I don't expect the companies to fall over themselves and bow whenever I walk by. But at the same time, I do expect to receive all of the published benefits of the programs, every time.
Think of it this way -- if you went into a store that advertised "Buy two, get one free" and the clerk said that he didn't want to give it to you, or that he hadn't hear of the sale. That would probably upset most people. It's the same way with the hotels. Hilton advertises "Make gold, and get free breakfast every tiem you stay with us." It's no different than a Buy Two get One Free sale.
Being elite doesn't make me a better person -- but it does mean that I've qualified to a better "contract" with the companies.