Carriers created this mess for the future to save themselves during the economic downturn. Everything was for sale: elite status, access to premium security line, check-in & boarding. If everyone is elite, nobody is elite. Now that the economy is improving and businesses willing to pay for premium seats: 1) the other premium benefits mean less; and 2) the sole meaningful benefits of premium status are before one boards the aircraft becs. UG's are declining and soon to be a thing of the past (can't blame carrier for wanting to sell an F seat for an F fare!).
All comes down to short-term strategy to save the carrier vs. long-term strategy to maintain loyalty.
My travel is much better now that I am not hog-tied to a mileage program. I am flying in F on the carrier & flights which best suit my need for a particular trip. That's great for me and terrible for carriers.