Thanks for the feedback guys.

OK say Avios points are useful for short haul domestic US if I am using them to book AA flights for example? Also Avios for Alaska to get me off to Mexico and Hawaii sounds like the right direction.

Glad I picked the right option in SW for the companion pass with the kids for our general 'local travel' option. With their new routes in Costa Rica, Mexico and the Bahamas opening this year they should give the family some nice vacation destinations that aren't too far in flight times or too high in price especially when combined with the Companion pass.

As for the international flights to Aus, Tokyo and London/Manchester it looks like just focusing on Chase and Amex points will leave my options open the widest and I can always use AA off-peak to try and cover the larger portion of the miles for a low price.

Aspirational travel is very tempting and exciting, but with two young children the likelihood of myself and my wife jet setting first class to exotic destinations isn't in our future any time soon. So for now we are better focusing on high value, short distance hops to family friendly destinations.