Those same 55,000 points, if “purchased” via a federal income tax credit card payment at 1.87%, would “cost” $1,028.50 (about 11% more costly), basically a form of MS. For some people that $1,028 is tax deductible.

Many people, without having a specific redemption in mind and not buying speculatively, frequently make significant tax payments by credit card thus essentially “buying speculatively”.

55,000 points for $1000, speculatively or otherwise, is most definitely worth it. For example, in the past few months I’ve redeemed multiple 25,000 Hyatt awards for rooms at Grand Hyatt Vail (2 different stays, ~$600/night and ~$1100/night) and Hyatt Residence Club Breckenridge (~$550/night) and also multiple 15,000 awards at Hyatt Place Keystone and Hyatt Place Park City (both ~$300-350/night). I liked being able to jump on all those reservations as soon as I saw them, without having to be concerned about buying the miles.

If predictions of travel (airfares and hotel rates) getting MUCH more expensive turn out to be correct, points and miles will become even more valuable.