Even when the transfer system was active, two cents a mile for 100,000 miles is $2,000. And if the mile-owner is not SE and can't do instant KK, then they probably can't get the seats you want, then just get the tickets for you. After all, if they could get the seats folks want, they wouldn't be considering the iPod, would they?
Me, I have always got the seats I want and I'm not SE and never have been. But a lot of people say they can't, and this way they at least get some kind of treat for their miles.