I remember arriving in Ahmedabad (India) late one night by train unaware there was a big political convention happening in the city, and everything was booked solid from the $4 flop houses to the 5 star joints. Two young boys who had borrowed their uncles tuk tuk for the night to earn some pocket money drove me around for over an hour looking for a place to stay and we must have checked out 20 different places.
In the end they actually invited me to stay at their place! but I opted for a return to the Railway Station where I shared the 2nd Class waiting Room with around 30 other travellers (strength in numbers). I've subsequently slept at a few Indian Railway Stations and have felt safer there than I have in some hotels.
But to answer your question, NO. I wouldn't pay an outragious hotel rate if there was a perfectly good Railway Station available, but then again 'outragious' is itself subjective. In India I consider $50 a night OUTRAGIOUS!!!

