I don't really see why these should be capped only in the US, they aren't in other locations.....
You can also read this to mean that intra-US awards will be capped at $1,000 just like the taxes/fees intra-Europa are capped when you pay them with miles. The wording is so vague that it's useless. But I really doubt it is intended as a cap fur just the US, why would they?
Good luck fighting this when there are so many US FFP's that are cheaper....