I think this is a nice concept; let's hope it's extended one day to long-hauls!
Also, the way I read it, it's 7,500 miles per segment; so, unless you're based in AMS or PAR, then an award for, say, xxx-AMS-yyy r/t will cost 30,000 miles to cover the charges/taxes. But if they include TLV in "Europe" (or even CAI, CMN & RAK) then maybe that's not too bad for a 'biz' award.
-- Henry