I would not want to carry $1000 in gift cards with me. That would be ridiculous. That's the same as carrying cash and if something happens and I lose it, I'm out a bunch of money. My gift card(s) stay in the safe until the end of the trip where they can't get lost. When we stayed offsite last summer, we still paid with gift cards and we brought multiple ones with us for that day (I was too lazy to combine them in advance like
@TellTheHubbyLater did
) and I was much more comfortable carrying only $100-$200 around with me.
I get your point. It is one more step to pay at the front desk but it's worth it for me to (1) see everything on one bill and (2) keep my gift card(s) safe from loss.