Originally Posted by
tmiw
I feel like Y travel (at least domestically) has never been a good way to redeem points, with a few exceptions.
That said, I think earning points will become harder over time. It's already becoming more difficult to justify the relatively high interchange rates the card networks charge in the US when they've been heavily capped elsewhere (AmEx recently announced they were cutting theirs, for instance). However, I don't think they'll ever be as low as e.g. 0.3% like in Europe--at least not without a dramatic change in government, anyway.
Y redemptions tend to vary in terms of how redeemers feel. Most of Flyertalk (or perhaps the most prominent and vocal segment?) seems to believe that J and F redemptions are "best" - when you consider the notional cash saved. I'd consider myself part of that contingent. In the wilds of meatspace (i.e. the real world), most seem to prefer cheaper/free Y tickets - "I can travel more!"
That's an interesting angle on earning that I've always wondered. In my experiences living in the UK, AU, and NZ, I always wondered why credit card ownership was rarer, less rewarding, and more expensive (annual fees more common, transaction charges). I had assumed that it was due to a moderately less profligate consumer culture than the US as well as a less competitive landscape of card issuers competing for slots in your wallet. Your explanation is the eureka moment for me.