They're morons? You're the one redeeming your points to make basic tickets a little less expensive. Have a quick look at the $/mile of flying an international business ticket vs. making your Seattle to LA flight cheaper.

I should also point out that you won't find other airlines that do things differently.

Here's a brilliant idea for you. No airlines give you miles for redeeming an award ticket. Why should AS give you a full 100% of the miles when you're only buying half the ticket. Seriously, have a long think on that before you go throwing the moron word around.

You're flying less, you'll have lower status. That's the way every mileage program is designed.