Hard-expiring the points after 1 year, especially large accounts, is illogical. AP got paid for the points, and they presumably got to invest the funds. A modest re-instatement fee, sure, charge $100, but to charge thousands of dollars to have an account reinstated is just abusive, IMHO. The amount of negative goodwill created by cancelling points just doesn't make cancelling points 'worth' it.
Having said that, there's probably an Aeroplan partner out there who would be willing to push through a retroactively dated transaction.