I guess we could say that the airlines and the hotel programs are caught between a rock and a hard place ?

It seem's they are caught between driving people away (being selective, being exclusionary) and not being out-competed ?

I think some of these tactics are very short sighted. That is, I don't think the insult to long-term, current customers is worth the chance to attract new customers.

Sometimes, this is termed 'stickiness', and true style and class is very sticky - if you feel respected and valued, then you will return !