A penny per mile on a straight cash-out is actually better than I would have expected.

The merchandise offers are usually bad because on top of the expected-lower rate of return on the miles, the listed "retail value" of the merchandise offered is usually well out of line from reality. Look at the value listed next to any TV, set of golf clubs, etc. in those catalogs: it's usually the price the earliest adopter paid for that model. I always look at the golf clubs in particular: by the time a set of Taylor Mades or Callaways hits one of these miles/points catalogs, usually with a list price of $899 or whatever, I can get that exact set of sticks for $500 elsewhere. Same concept seems to hold true for electronics and other goods as well.

If I was awash in millions of miles, I'd consider selling some for 1cpm as the Lowe's guy did. At least I can immediately monetize that gift card for products that are optimally acquired from Lowe's. (e.g., Stuff that I need and already buy from Lowe's and that I'm not paying a big markup over an Amazon or eBay cost for.)