What does status really cost hotel chains?

I have thought that raising the requirements and devaluing points was an effort in part to rid themselves of status holding customers that cost them more than they are worth. I've have felt that way about myself at times.

I've not put pen to paper to figure it, but I'm not sure there's any way that the benefits from status can really cost that much on a net basis. If I become a low cost floater instead of a price sensitive loyal, does that really benefit the chain?

Some of the breakfasts are good, but many are so minimal that I wouldn't even figure there is a cost to providing it. Upgrades? No cost or they wouldn't provide it. Points? Minimal extra amount to status holders.