The roads should be relatively devoid of Rally traffic this year. $4++ fuel will terminate the plans of at least ½ of the normal participants. Rooms were available last year during the Rally and fuel prices were in the low $3 range. I am personally and hoping for attendance to be in the 200,000 range, still a lot of people, but much easier to get around in.
500 miles a day sounds ok until you get out of the SE U.S. You will have plenty of time to stop and smell the roses and sight see. You may want to pick up the pace across the Midwest, not much to see until you get into the Badlands, then the Black Hills. Hoteling or camping? Plenty of camping available throughout the Hills, if you can stay up in the hills I recommend it! Cool evenings make for great sleeping weather in the Hills. It stays warmer in Sturgis and the surrounding area to the east. Hotel rooms will be aplenty, just spendy, even with the decrease in Rally attendees. 1 day dedicated to the Freak Show in Sturgis should satiate your appetite for Rally related events and sights, plan on spending the rest of your time riding some real great roads in the Hills. You can come back and spend evenings walking around Sturgis or make a trip to “The Chip” to see your favorite band and some ****ies.