I view it as a precursor to revenue based requirements.
Don't forget one could qualify on base points after 5-7 night stay at a premium property in a paid suite. (Say PHSYD in harbour suite ?) This is significantly better than previously
.
That said I don't think the 25 stay ~ 8-10k spenders should loose breakfast (imo most valuable benefit) but I think it's reasonable that the 60+ nighters (likely 15k +) to have a higher status.
My experience with airlines has actually improved with revenue based requirements. While annoying on paper I see better recognition and I guess that makes good business sense.