We use our credit card almost exclusively. I do carry around $20 in my purse for some small purchases. We earn thousands of points every month.
We took our family of four adults and two children to Disneyland last month and stayed in hotels for seven nights entirely free due to points on the cards. Each hotel gave us a courtesy upgrade on the room, so three nights were in a one bedroom, with separate living room and sofa bed, and four nights were in a two bedroom with a separate living room and sofa bed. Breakfast was free for the whole family every morning.
To be fair, I should point out that three of those nights were due to bonus points we were given when we opened a new credit card account a few months ago for the express purpose of using the points for free rooms.