While I wait on the response from Hilton regarding gaming locations, let me clear off a few points. I started off on a wrong foot here.

100K points is a lot worth than $400. By a conservative estimate, the 6 Night HHV award itself is worth over $2000.

Most of us convert points for miles for the following probable reasons...

Topping off an account.
Liberating orphan miles.
Getting a transaction counted for promotions.

With a lot of posts on FT regarding transfering miles from one airline to another, I tried to dig up methods for moving miles around. Using the current known methods, there is a loss of 60% of the miles IF someone does it.

Encashing the Gaming chip reward and then using it for a well thought out mileage run can bring down the loss, if not eliminate it.

Converting points into miles is not the best proposition. If someone is inclined to do it, considering the above option might save some miles.

Disclaimer : I personally would never do it. Six days at HHV works fine with me.