I think they chose 1.5% to better compete with Capital One & Discover.

I think they will allow the points to be transferred to other Ultimate Rewards accounts to again catch up with American Express. American Express issues three cards which offer more than 1 Membership Rewards point per dollar for general spending. The Chase product would appear to be simpler, which is what you need to do when you are offering a "me too" product.

The interesting aspect to me, is whether they will force convert existing Freedom cards to the new one. That's what they have done before, although it takes years to complete. If not, will they allow conversions to this product without an application, or will they loosen their 5 cards in 24 months policy for this card? New product introductions would seem to be hampered by this unpublished policy.