Just to close the loop on this one:

I called in and the agent offered to cancel the first segment (which is the long pacific flight). She had to reprice the ticket, and after consulting with the pricing desk, said that I would not get any form of refund if I cancelled the first segment!!

Since there was a schedule change I went ahead and requested the full cash refund of the whole flight. Then I booked with miles the pacific flight. And I will book with cash the domestic flight.

So assuming I actually get the cash refund it will work out ok.