Much as airlines try out fare increases and see if they stick, this may well be one. For TX based flyers, the new minimum level on CO does make AA more competitive, especially if free tickets are the primary reason for your frequent flyer affilliation. (Mine is upgrades, so it is a bit different.)

IME, CO has less availability right now than AA, at least on the lower level awards. This will make it harder to acquire the seats (and I'll believe more availability in the future when I see it.)

Look at how much time CO has given for this to be implemented. If AA does not follow suit, and if elites in TX and surrounding states cut back on post 12-31 bookings and go to WN or AA, portions of this change may end up where some attempted fare increased go ......... away.