However, I still think that 3X points (potentially 4.5% back) on travel and dining + priority pass + marginally useful travel insurance is not competitive for an ultra-premium card any more, and to offer any additional benefits that are actually useful Chase will likely have to cut somewhere else. If they go to an Amex-style breakage-based model, they risk angering the folks who enjoy the simple rewards structure, but maintaining broad, applicable benefits hurts profitability.
I disagree that the Chase cards are uncompetitive. You forget about the 5x points the Freedom and 1.5x on the Freedom Unlimited, which can be pooled with the CSR points. I don't consider Citi a competitor, as their transfer partners are mostly useless and they don't have a travel portal that would pay 1.5c per point. US Bank Altitude Reserve isn't competitive either, unless you are willing to fiddle with Samsung Pay and the vast majority of your transactions are in person and at merchants that support contactless payments. Really, which cards do you see as competitors?
I believe that the CSR fills a particular niche: no hassle rewards transferrable to airline miles and hotel points with useful bottomline value (1.5c per point).
If Chase does decide to raise the annual fee, I'm very likely out. I have had the card ever since it came out and have never even considered cancelling it until now.