It's hard to conceive how a space station with just some 100m of radius can even be useful. The artificial gravity is very likely far from a bottleneck.
Well, gotta start somewhere, and that's probably a decent size for a hotel.
I'm not sure how useful these would really be, of course. Only way to tell is to wait and see, unless you're working for Bezos or Musk and they're paying you to actually do the thing.
(Heck, part of me thinks they could be so terrible in practice that they are one of the fillers in the Fermi paradox, but I really should tidy up those thoughts into a proper blog post rather than ramble in a comment…)
It can be almost arbitrarily long on the other axis.
Though without specific use-cases to ask questions about — and I have none — you're right by default: just because it's possible, doesn't make it good for anything specific.