I's a great marketing idea but it will have a serious flaw if real elites want to make it that way. Unfortunately I doubt real elites will be able to organise collectively to make this happen. How many of them will be annoyed enough to form a union which can then present AA with its complaints about elite perks dilution and demands for change. Anyone volunteering to start such an organisation?
It's a great marketing idea because if only 25% percent of these people are hooked by elite status and put enough business AA's way in order to requalify as a real elite that's a serious amount of cash to the bottom line (airlines are some of the highest geared businesses around). And there is nothing like elite status to build loyalty.
The flaw is of course that it can seriously annoy real elites. I hate a business that ignores its long term and best customers in pursuit of the next customer.
I am not as aggrieved by others as this because I don't have the perspective. I made elite this year for the first time after flying with AA only since Jan 98. But I personally disagree with the system and will join the union and pay dues if someone forms it. A good negotiating position would be to ask that fake elites only get bonus miles and no other perk.
For the record I made elite in the proper way but with a soft option. I passed 50K in June on my sixth transatlantic. Total income to AA was only about $7,000 as my company has a good deal with AA in economy. I bow low to anyone who makes elite on segments (especially if the fly out of a hub.)