OK, after standing on the sidelines for a bit, I feel a need to respond.

I fall in the category of the frequent traveler who pays the discount fare. I travel SJC to IAH every week round-trip. I do the legal back-to-back maneuver by booking one-way ticket SJC to IAH and then booking my roundtrips from IAH back to SJC thereby getting the Sat night stay.

I'm on a project for a specific long-term period, so I generally book 3 weeks in advance. Plans change sometimes and I'm willing to pay the $75 change fee...and when they do, I usually have a fare difference which can be expensive ($1000 or more).

I fly CO and AA, usually CO because of a direct flight. Have elite status on both (Gold/Plat. respectively). I think CO does a good job of rewarding the full-fare traveler by allowing instant upgrade if it's a Y ticket. That person will be ahead of me to upgrade if he's purchased full-fare (and rightfully so). I've also had "instant upgrades" from AA when paying Y class fare. Pay Y class but I am seated in first-class depending on availability. (As most of you know, Plat. Exec. on AA is based on class, which I disagree with.)

So when I pay Y class, I am rewarded with a better chance to upgrade. When I pay discounted fares, I call like every other elite traveler. I think this is fair.

The reason why FF programs are around are to promote loyalty (and therefore, more business). I think if more airlines went the way of TWA, there'd be a lot less loyalty to a specific airline. Many people who would be excluded from status would fly whatever airline based on price/convenience instead of sticking with one carrier.

Sorry this was so long...just my opinion.