That is a really cheap rate for a category 6 hotel. You could use the points at another category 6 hotel with room rates of $300-400. The JW Marriott in DC or the San Francisco Marriott will often have rooms selling at that rate.
The travel packages let you get a 7 night certificate along with airline miles (up to 120K miles). You can get a mile for a Marriott point in a travel package, which is a great deal.