I think it's silly to pay for anything more than a good night's sleep. After all, how much time are you going to be spending in your hotel room?
Let's not forget that as PJ said, you can walk a short distance to experience all those high-end amenities, if you wish--such as that premium drink that will cost you $25. Every single fancy-ass Strip experience will cost you, and you'll usually pay through the nose, so why not pick and choose those experiences instead of staying at a horribly expensive megaresort and in essence, paying for all those experiences up front whether you wind up actually enjoying them or not?
There's another consideration for me, personally, that may not matter to anyone else: intrinsic value. A $200 room at the Flaming O and a $500 room at the Cosmo both contain a bed or beds, a TV, a shower, a toilet, etc. etc. Am I getting $300 more worth of toilet, etc. if I stay at the Cosmo? To me, this kind of expenditure is like taking a limo from the airport instead of a cab.
Naturally, there are some demographics for whom that $300 difference isn't a consideration, but I doubt I could ever stomach coughing up $500 for a hotel room even if I was as wealthy as Bill Gates. Anyone who wishes to gratuitously insult me now can call me cheap.