So this question is for those aiming for a higher VIP level or those already there..
how do you feel about it? Does it actually give you real benefits, or does it just make you spend more?
It really gives benefits and lowers the house net edge. It's the same when a restaurant has cashback or awards for customers that come all the time. It's good for both sides.
Some people gamble on many different casinos so giving VIP status and awards to the user makes them prefer to use always your casino. More volume to the casino is good because they have higher chances of keeping the profit you generate to the house, and you have more fun because you can hit more free shots and maybe be part of the gambling community on their chat and forums.
Of course if you are addicted this will make you gamble more and you could get greedy to rank, gambling more and losing more money.