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I typically find hotel points to be more valuable than airline miles, at 4 times the rewards you can come real, real close to a free night at their lowest tier hotel in two stays. Not that this would get you anything nice (think Knights Inn) If you stayed three or four times you could snag a free night at a Wingate or even a Wyndham. That's not a bad turnaround.
Since I'm building miles now for a reward trip to Sydney in 2013, I'm choosing the airline miles option. It all depends on your travel needs I guess.
(Note: I am NOT financially compensated by Wyndham Rewards in any way, except for being a member. I was not compensated for creating this post. Any conflicts of interest will be disclosed, this is not one of them)