1. I disagree. Short-haul tickets are a bargain in programs like Avios, BMI Diamond Club, etc. If Delta changes the redemption to something similar to "Pay-With-Miles", then there is no difference in redeeming short-haul or long-haul. It's just a cashback program.
Yes, but short-haul is where the other programs (except Avios for AA direct flights) are poor values. That's why I would reserve fare-based redemptions for cheap flights. Not because the redemption is a better value* but because it's where other programs don't give you a good redemption option.
*The lowest fares do provide a very slightly better redemption value in a fare-based programs, because the taxes, which are mostly avoided when you redeem an award, are a higher percentage of the cash ticket price.