That is correct.....the changes taking effect late 1Q 2012 is a bait-and-switch. Paid and flew to reach 2P in 2011 even though you could have flown cheaper or more conveniently with someone else, just to get the 2P benefits? Too bad, so sad--they are yanking many of the valuable benefits and there is nothing you can do about it. (Actually there is--fly someone else.) It's very low-rent and unethical to take away significant proportions of the benefits (like they did for 1P and especially 2P) no matter if it's technically legal. It shows that the new UA is not to be trusted and doesn't deserve the loyalty of someone who plans to earn 74,999 miles or less--especially 49,999 or less.
I would imagine that 1Ps will be next to feel the hurt when they decide to mess with things again.

If they announced the changes with time for people to know what they were getting into and judge appropriately, that would be fine. The bait-and-switch aspect stinks, especially for those who worked to earn 2P to earn the benefits and now will be asked to pony up even more $$.