Rewards based on spending are not a loyalty program; they're a reward program. Maybe they should change his title to VP Kickbacks.
I keep wanting to start a thread on the "ideal" program, but haven't found an appropriate forum. One of these days. In one sentence, though, my idea is that economic rewards would be based on dollars spent while other perks would be based on number of trips (not number of miles flown, which has never, ever made sense -- back in the day, someone on a $99 cross-country fare was rewarded more than someone making four OMA-ORD round trips).