This is basically damage control IMHO; though I'm not ungrateful for it, this reeks of an impending de facto devaluation. Oh, wait, we already knew about that...
Consider that at present a UC award on VS runs...I want to say 25k/40k points (OW/RT), but I can't get into the website to check right now...
On Alaska, a US-Europe award is in BC is:
-62.5k/125k on Air France
-50k/100k on American
-60k/120k on British Airways
-NA/125k on Delta (R/T only)
-105k/210k on Emirates
-55k/110k on Icelandic
So basically this is a devaluation, Emirates notwithstanding, of 50-60% for one-way awards and 60-70% on round-trip awards. On Emirates it's about a straight 50% devaluation. I'll give credit where it's due, this is not a horrid pallative, and I think the segment point is actually a reasonable move WRT the "shuttle" markets in CA.