daved: there are really many other ways to look at this. While you see airlines as charging twice as many miles for exceptions, the historical truth is that they actually give you a discount for these select awards. When these programs were first introduced, there were no 25,000-mile awards, only anytime awards from 40-50,000 miles depending on the airline program. There were no rules and you could use the award at any time there was an open seat. The crucial part of this - no member ever complained in the orginal programs that 40-50,000 miles was too much for these type of awards. I know, I was there and reported on these programs. In the late 80s they did introduce saver awards with restrictions as you noted at 20-25,000 miles. Why? Hard to say but i think if you consider that 84% of all awards redeemed of any kind are the saver awards at 20-25,000 miles, it does appear that the average memebr of these programs is quite well served and taking advantage of the award discounts. It's really all a matter of perspective - are these awards with airlines half-full or half-empty? I'd say I'm much better off today than before when the only option i had was awards at 40-50,000 miles. True, some times i have to pay full price, but the times i can snag an award at 25,000 miles, I'm pretty relieved that the miles i have just went farther.
As for Southwest. They deserve all the awards they have won such as the Freddies. But for my self, i really am not interested in the idea of any seat any time. Why? Simple. I view using my miles "when" I want to more importnat than "how" I want to. I've saved millions of miles for those years when i don't fly as much or for my retirement days for rainy days when times aren't too kind. That's nice that Southwest will give me a seat any time I want, but the ones I want are 3-10 years from now and as you know, that perfect award you see with Rapid Rewards is only good for 12 months and it's gone - no exceptions. I like the odds of using a 25,000-mile award 84% of the time plus having the ability to save them for as long as i want versus the 12-month rule.
The bottom line - there';s a program perfect for every member willing to research and measure their wish list against the benefits available - for you it's Southwest, for me it's American or Northwest. While you may think my program choices are from those that "screw" their loyal members,I guess I'm pretty happy because i remember when my only choice was to pay 40-50,000 miles for an award. And while the concept of loyalty is fairly strong - i have to confess that i have not always been that loyal to every program i belong to - i have and continue to look for the better benefits and awards and am willing to love em' and leave em'. I know of very few members who have never looked at another program. The concept of loyalty should certainly reflect a two-way street.