For me, miles are for upgrading on international flights paid for by my business or the business that hires me and provides coach fares. This is the bulk of my travel.
For domestic, I will use miles to buy a ticket when the fare is especially high - even for my own business. For upgrades, I don't worry - its the electronic "points" which can be used for domestic upgrades only or fly coach. A 4.5 or 5 hour flight seems short after 15 years of travel to Europe from the west coast of the US and to Perth, Australia in the other direction.
As for vacation? Why on earth would I want to get on another airplane and sleep in another strange bed when I live in one of the most beautiful places on earth?
Best wishes,
Teacher49