The point redemption at Palm Springs Spa/Agua Caliente works similar to Morongo. You can redeem (up to a daily limit) for cash instead of comps. Therefore, it is in your best interest to always redeem points for cash EXCEPT if you are at black level or higher. At that status you are given % discounts at the buffet if purchased with point redemption. I wonder why Spa/Agua don't do this with all restaurants, as it would provide an incentive to keep point redemptions "in house" vs. out the door as cash.
Always keep in mind that hosts have become very reluctant to issue comps if you have any points available in your account (similar to Harrahs).
Therefore, you may just want to cash out every time and THEN approach a host for meals. The worst case scenario is that they will turn you down. But then you'll have the cash anyway to pay for your meal for the same value as the points would have done if not already redeemed.