Well, the issue is not having standard reward rooms available -- perhaps making what would otherwise be a "standard" room in most hotels (like a golf view) a higher level room category and charging an extra 1500 points for it. Truly premium rooms categories (like oceanfront or suites) are considerably more points at this hotel.
I have previously seen SPG award upgrades for oceanview rooms (usually 1500 points), but this is my first encounter with having to pay more for seemingly "ordinary" room categories.