Read it more as the main problem being that the margins are, at least in some cases, too slim when also needing to offer the status benefits and that people with status now have too little incentive to buy higher margin tickets.

Status matches are still ongoing and if EBG will be absorbed into FB as expected, the no. Of these “non-incentivised” customers should grow quite significantly. Not to mention what will happen to EBG Lifetime Golds.

Easiest way to limit the increase in elites via the thresholds would be to increase them or to e.g. cut XP from the FB Amex, which FR seems to be doing. Especially when tied to x spend = y xp, as this creates an additional/larger revenue stream -for those customers who stick around and spend enough-. If they don’t, then they’re forced to fly more/do more other XP earning stuff.

As for increasing level thresholds; 300xp isn’t nothing and for quite a few carriers there are solid alternatives routes outside flying-related things. For AF/KL, I am very happy with earning xp via SAF for example. I also like that you can only convert miles to xp by donating them.
However, if more XP can be earned via the differentiation of XP/fares, the thresholds may be recalculated regardless (within reason). However, introducing a minimum of 100 UXP, comparable to eg LHG, could make sense. However, I am not sure about the actual dynamics/benefits of such a thing for FB.

However, I would argue that the whole point and value of loyalty systems is probably also a numbers game in the sense that more (active/elite) members should equate more overall revenue or at least give a competitive advantage.

This brings me back to incentives to make all these loyal customers buy profit-generating tickets. After all, knowing how to make all these people spend more money than 1 eco light/basic ticket should be hugely advantageous. For this, I refer back to my previous post.