Even from the mid-tier levels on a couple of airlines (US, AA, and UA in the past three years), you got LOTS of offers for hotel status. AA Plat includes a standing offer for HH Gold, Starwood Gold, and similar offers that I can't recall for Fairmont, Holiday Inn, etc. Hotel status tiers don't mean much until you get way up there (HH Diamond, MR Plat, etc.).
I can't believe CO is charging THAT much money to *existing* elites that failed to requal in 2001. That's dirty pool. It would be one thing if CO asked ME for $200 for their lowest level (I've never flown them), but to ask somebody who flew, say, 80% of the required miles is just plain nasty.