I don't have any answers, but I have similar sentiments about Air Miles, too. Although I've been collecting them (fairly passively, mainly by credit card) for many years, they do look like a "bad deal" compared to most other frequent flyer programmes.

Having said that, the last time I redeemed an Air Miles ticket (some years ago!) I was able to redeem Air Miles for a one-way ticket (I think this may have changed since then) - something I don't think was readily available with other FF programmes.

One (relative) advantage is that Air Miles can now be used on a range of airlines (and not just on BA as was originally the case). Other original advantages - such as being able to check on-line availability of reward seats - are now found on most main FF programme websites.

I guess I'll keep (passively) collecting them "just in case", but will concentrate on other FF programmes. But I'd be interested to hear of others' experiences and views.