Oh totally! I used to see them as just the cheapest bunk but now I love the extra cash for food and tours. Last trip, the money I saved on a dorm for a week paid for my train ticket to the next town. It let me stretch two weeks into three. Honestly some of my best trip memories started in those shared rooms.
That's exactly how I felt until my trip to Bali last year. wrenc68 has the right idea because those hostel savings meant I could afford a proper cooking class I'd have skipped otherwise. Changed my whole view on budgeting for trips.