Linbe:
Excellent analysis and welcome to the board!
I would just add that for earning (not necessarily ease in redeenming) points for hotel stays, Hilton is tops due to its promos, etc. I believe you forgot to mention the credit cards that earn great bonus points. However, for those who wish to earn and/or reap mainly FF miles from their stays, then Starwood may be better. However, I have always viewed apples with apples and oranges with oranges, and see the Starwood program as sort of an adjunct to to a FF program and that it is not that generous for obtaining free stays, unless you are a very heavy user/spender for hotel space.
I see Hilton's conversion ability as only an easy way to "save" orphan miles and/or top off an account (Hilton or an airline's) and do not think that a wholesale conversion from HHonors points to FF miles is worth it. Better to get a FF mileage earning credit card or stay at a Starwood if that is your inclination!