I thought that that card also included utilities as an optional category. We have a very high utility bill involved with our business (10-20K per month) and I have considered the cash back option. However, I do believe that cash back will generate a 1099, whereas the miles do not.

Also, I agree that, at least to me, the miles are more valuable. For me, they convert to actual, wonderful travel experiences. If I got 5K in $$$ back from my spending every year, then gave 30% of that to the IRS, then tried to convince my family that using the remaining $3 or 4K on frivolous travel is a grand plan... well, it ain't gonna happen around here.

On the other hand... I can (mostly) book flights with impunity with my "but it only cost $10 bucks round trip" line, and nobody bats an eye!