The thread is about the overall comparison of EL AL Matmid points versus AA miles. When you look at both programs you must take in to account all your costs, taxes, surcharges, or whatever inorder to get an award.
If you cash in points (an exaggerated amount in my view) on El Al you still need to pay about $250. On AA you pay about $50
Another example from TA. If you fly to the Far East using AA miles, the charge is $52 taxes all inc. No fuel surcharge.
So the original cost of the Challenge should be figured in but I say that it is negligible in the total picture
AA still comes out better