I was an intern at a game company last year. I showed the CEO some of the stuff that is going on in the demoscene. He got really worried and told me to not show that to any of his staff. He was afraid that it intimidates his highly paid coders and designers. I found that rather disturbing. How are you going to kill Hollywood if you are afraid of algorithms?
I was an intern in a startup that tried exactly this. It was a lot of fun. We got a ton of VC cash to burn and so why not do it in a nice environment? In the end, the company failed. We all got too much into a "holiday" mood. The webdesigner won a surf contest. The CEO started an affair with not one, but two of the female employes. We all got fat from eating delicious food from the 5-Star hotel and high class Restaurants near by.
Moral of the story? Stay frugal even when you dont have to. It might be better for the company.
I was an intern at a Startup in Silicon Valley and experienced something very similar. I got screwed over an even higher amount. The CEO argued, that the reward does not apply to interns. I took him to court and won. Emails are legally binding just as any other expression of intent.