I think, also, BA are starting to skate on very thin ice with the whole business of taxes and surcharges. It's getting to the stage where the fee you have to pay for an award flight in a premium cabin is close to (or in excess of) that of a cheapie shorthaul return flight.
Paying the fuel surcharge for an award ticket is really not on - taxes I also think are taking the mickey somewhat. If you look at other loyalty schemes such as the Nectar card, you don't get to the checkout in Sainsbury's and find the checkout girl says 'ah yes, I can knock off £2.50 but I still need to bill you for the VAT and also there's a £1 contribution to our petrol costs, not to mention the £2.40 contribution to the business rate taxes we have to pay".
If other companies can operate truly free loyalty schemes, then I really don't see why BA can't. But then it's a case of BA won't.