I don't understand your statement that the "value is not there" for a domestic award. You don't have enough miles for an international award. You might be able to get gifts/gift cards/shopping mall/newspapers/pay with miles, etc. But the value is generally even less.
I can see you visiting 2-3 domestic cities for 40K miles. If that is not value, I am not sure what is. Almost certainly it will be more value than trying to use them for something other than flights.
I just booked a domestic first class ticket for a friend using 45K miles to JNU over Thanksgiving week next year. Of course he would never pay the F fare of over $2,300, but even the coach fare prices at over $900. Tell me that is not a good value
It will be flights for sure, I prefer to go international, I know I need more miles, but I always fly *alliance, so I gotta do the credit card route