This has been a problem for years even before the recent changes. There has always been a message saying there would be a fee which "equals 1 night of your room charge"

MY room charge when booked on points is points.

Let's suppose I had booked a 150 rate and the BAR at the time of my cancellation was 500, what would I be charged?- my room rate of 150. Not the BAR of 500.