Woodenshoe101, thanks for reply and I agree 100%. Switching 2nd segment to KLM flight # was unfortunately not viable as there was nothing available in the same fare bucket and the fare delta was $600 / ticket so it is back of the bus for us.
I think, alliance CP benefit should be better defined and transparent. I think it is intentionally kept vague to attract flyers to alliance flights on international. In my opinion, this is a poor strategy as it antagonizes supposedly loyal passengers. Unfortunately, international airline alliances are primarily marketing alliances and it shows. As you said, no better nor worse than flying Star Alliance partners with United.