People, people! It bugs me every time I see FTers ripping on Points.com for their exchange rates because they are NOT free to impose whatever exchange rates they like!
Please remember that in order for Points.com to give you X for your points, they need to receive that X from the airline whose points you are using. If airline X is only willing to give Points.com say half a cent per mile redeemed, and Points.com has to pay retail for the points you buy on anther airline (say 2 cents each), how could they possible not give you so many fewer points!
Why would airlines want to reward you for your loyalty to them by buying you points on other airlines? Buy allowing Points.com to offer you a better exchange rate, they would be: a) loosing more real cash for miles verses potentially empty seats b)enabling you fly their competitors with their currency at their cost!
My guess is Points.com does make some money off of their transactions. But the fact that one can get as much as 1 cent/mile value trading AA miles (and not other airlines) tells me their exchange rates have more to do with the restrictions imposed my the airlines rather than the ill-will of points.com management!
I DO think POINTS.COM has some serious problems...their lack of CS is one of them...but they do disclose their exchange rates and if a user does not pay attention, it really is not Point.com's fault!