I have not stayed there, but would very much like to. The Travel Channel's Great Hotels had a 30-minute show on it and it definitely looked like a great place!!
I live in the area and have many clients that like to stay there - it is big for advertising folks and they seem to love it. I have stayed there a couple of times myself. It is okay (not my first choice for the area), but it depends on what you are looking for and what your preferences are. Ocean view rooms are the best, but the partial and the non ocean views are overpriced, IMHO.
I would not use points there when there are some excellent moderately priced options. It's that old what are your points worth cash vs. points debate. However, you dont have to pay more for points, so if that is what you need to vacation using your points here would be fine. It is an excellent hotel in many respects definitely one of the big hitters in that area. The pool is very, very, very small. If you are looking for a hotel in that area, I would suggest Casa del Mar, but it can be pricey, too or Le Merigot for a more reasonably priced option. I have to put alot of clients up in Santa Monica and LA/Hollywood, so I have stayed in alot of places so that I could know what I was recommending, so if you are looking for recomendations you can email me and I am happy to give you some alternate hotels based on what you need.
I was going to remark that many of my former co-workers have raved about staying there. Some have even returned to vacation there on their own. Of course....we're in the NYC advertising business!
I have never gotten why, but my ad clients love the place. I think it is a total social scene for all the ad guys, and I guess I am hoping to avoid them!! I dont know, the mystique is lost on me, maybe too many business meetings there. LOL!!