The cost of a RDM is about 1.5-2c each.
If you get a credit card that gives you cash back, you will get 1.5c -2c.
If you choose the DL Amex instead, you are getting 1 mile instead
= 1.5-2c in opportunity cost to you.
If you choose to use it for PWM then you are getting 1c value out of it.
May I suggest that you get a cash back card instead.
You will get MQMs when you use the cash for travel as well.
If you use it for last minute awards,
then you are getting 2-3c value per mile, which is more useful.
1 MQM is worth about 3-5c.
e.g., WAS-LAX travel on Feb5-7 is 200$ = 5000 MQM.
this works out to about 4c/MQM, which is my typical ratio of value.
Very rarely do I get better value than that.
I do not do mileage runs as my time has value too.
With the double MQMs etc, one can get MQMs for 2c,
but that is entirely unpredictable, as my travel is based on my work and not the airline bonuses.
If use my SPG card, I get 1 point instead of 2c cash back from Schwab.
SPG to me is 2c each in cost.
The value may be more depending on usage.
If I use my SPG to get DL miles, I get the cost of a RDM down to 1.6c each, if I use the 20k-5K bonus.
To me 1 MQM = 2 -3 RDM or 2 SPG in cost to acquire.
Also I have to travel to get MQMs usually,
so it needs a lot more effort than charging credit cards for RDMs.
You make some very good points. When I think back, I have mostly redeemed miles for F/BE tickets and a few times for gift cards. Hence, your analysis of 1.5 - 2 cent/RDM makes more sense than my 1 cent/RDM.
Regarding the value of MQMs, for me using the price of a MR does not make a lot of sense since I have only done two MR in the last 6 years (once to maintain PM and another time last summer when they had that crazy $250+tax offer for LAX-ZRH-LAX). In any case I agree with you that the cost of MQMs rarely drops below $0.04/MQM as can be seen at
http://www.farecompare.com/search/flyertalk.html .