Fellas, I'm about to join the clan, and was excited that the event was close to home for me. I too was a little surprised that this was in this "big" hotel, but this is what I know about Steamboat in the summer. The area is MUCH busier in the winter than the summer. Big hotels such as this are usually hunting for business in the summer. I'd guess that given that they are right on the mountain, KTM was able to negotiate the room for displays, etc.
The "base village" area used to host some historic car races in the summer that were a blast as they were able to close all the roads and have a sweet road course atmosphere quite easily. There are a lot of places to stay right there, and some camping fairly close. I have some good friends that live in Steamboat and can get some better info if there is interest.........I may just go ahead and do that.
My sense of things is that there would be quite a bit of nearby lodging that is not quite so posh for those that would prefer that approach.
Don't give up on the event yet!!!!