I could have bought the rooms in Klamath Falls on Priority Club points, too, but they're running a double-points offer right now, and also it's usually in my best interest to redeem the points on the hotels in the higher-prices locations. Often, the cash cost of a particular IC Hotel only has a vague relationship to its points cost.
When setting up the trip, I couldn't figure out why the Holiday Inn Resort just north of K-Falls was $5/night less than the theoretically lower-end Holiday Inn Express downtown. Lisa pointed out that the "Resort" doesn't include breakfast. That makes it slightly more logical, I think.