Its pretty easy to use points to book rooms for other people, I was able to gift 4 reservations a few weeks back for an event. All I had to do was write "Gift Reservation for xyz person" in the Request option.

Right, but that's why I said "voucher," not "points." Incidentally, that is why United got such a bad rap for giving out vouchers rather than cash for bumping passengers. Because everyone knows vouchers are more than likely never going to be used before they expire.

Even considering you can book rooms for others, there's still a huge segment of the population (50%?) where hotel points are still completely useless. There's a time in my life hotel points would be completely useless to me too. Many people don't travel and don't have friends/family who travel either, it's as simple as that. The HN crowd seems to believe that everyone is taking a few vacations to far away places a year but that's simply not the case, most people I know do not travel at all and do not want to either.

Plus, even you wanted to use them they would have to have a hotel at the destination where you also wanted to travel to.