A previous poster made an observation on this exact situation. For many travelers, savvy traveling is all about the actual cash you save and not about any ultra-inflated "value" you get out of your miles. There's no way many (most?) of us would actually spend $20,000 on such a fare as mentioned above so we aren't actually "saving" that much. Sure, in the above example, your miles work out to a great value but that's not necessarily the ultimate goal with miles for many of us here. It's to save as much out-of-pocket cash as possible. For us, we can only save what we would have conceivably actually paid for a fare.
So again, we have this scenario of savvy traveler #1 using 60,000 miles to get on the same plane to the same place as savvy traveler #2 who used 120,000 miles. ST #1 spends $100 in cash while ST #2 spends $1,200 and uses up an extra 60,000 miles. (actually less than that considering the fare earns miles)
Working it out mathmatically one way, you can easily prove that savvy traveler #2 receives far more "value" from his miles compared to ST #1. But, working it out mathmatically another way, you can just as easily prove that ST #1 came away with $1,100 in his pocket and saved thousands of miles compared to traveler #2.
Both can be very "savvy" at the same time because both have different goals and value. A comfortable upgrade is worth $1,200 and extra miles for many travelers, while for others it's not, regardless if the fare would have cost $20,000 or a $100,000. That has no bearing on our decision.
And thus begins the discussion of what we consider to be of "value"...