FF Programs promote product differentiation, i.e. they provide the opportunity for a producer to compete on some basis other than price. In this manner they avoid their products being a commodity. Some would say from the consumer standpoint that this muddies the water of the marketplace but it is a part of the classical definition of the oligopoly.

Remember several years back when the government increased regulations on credit card transactions/fees?Oh the din and hue from the American banks - "it's bad for banks, it's bad for the consumers, no more credit card goodies". Well the goodies are still here, maybe somewhat diminished, perhaps standards a little tighter.

It will be the same for the FF programs. They will be diminished, benefits will be more associated with higher spend customers, they'll still be around in some form though.