I would like to know where these "international travellers" are from - having spent 168 days overseas this year, mainly in 4 to 5 star hotels when on the ground, almost every hotel I stay at has a charge for internet access. At some, it is bundled with my corporate room rate, others (such as IHG and Hilton) I get it for free because of my status - but a normal punter would be paying for it. In terms of costs, around $30/day is what I expect to pay - sometimes, there is a cheaper rate for longer stays (ie. $30/day or $100/week).
Personally, I prefer to use wired connections in the room as it allows me to use my portable router and have secured WiFi and any number of devices - typical WiFi in a hotel will be for a restricted number of devices - and using my own router prevents anybody sniffing the WLAN to see any of my traffic in the clear.
As for the backpacker/hostels offering it much cheaper, I think it comes down to scale. A 4 star hotel with 800 rooms will need a pretty big (read expensive) pipe to provide good speed to all customers and corporate type SLAs, as compared to a hostel with (say) 50 room where 8-10 WiFi access points and a decent soho internet connection would be good enough - after all, it's a hostel, you don't expect to have a great internet connection.