Maybe it's only because I dont' fly first class (domestic or int'l, though I've had a couple of op uprades on short flights to domestic first), but I'd much rather have the hotel. If I'm flying somewhere, I'm likely going to stay there a few days. If I'm taking a *long* flight somewhere, then I'm definitely going to be staying a week or so. Now, I might not stay in the same location the whole time, but even so I'm spending enough time in most rooms that it makes a difference to me, much more time than I'm spending on the planes. Yes, much of that time is with my eyes closed, but after a few days even the waking time in the hotel room would surpass the time spent on the flights.

The other reason I say hotel is because in general it is more attainable for me. I can get a nicer room, even for multiple nights, for a more reasonable cost than I can get a nicer airline seat/service particularly on an international journey.

BTW, isn't there a technical term (possibly now outdated) "first class hotel" which is really not a top of the line place? I seem to recall that from a decade or so ago.