Actually I dont believe people "hold out" for very high valuation - people who routinely do international travels would most likely prefer to use their miles for the long haul flights in premium class. Since miles are in finite supply and are harder to get now, people would rather not to use their miles to fly relatively cheap flights which can easily be paid out of pocket cash without hurting much their pocket books.

Of course if a person is tight on cash, the above does not apply.

Besides, I believe most people would enjoy having some nicer things in life that they normally would not pay for even if they can afford it because the out of pocket cost is very high, but when such niceties can be had for very low out of pocket costs, people would aim for that. Long haul premium cabin flights would fall in this category no doubt.