It is interesting that people are now looking at the alliances and wondering what loyalty means. But even in the pre-alliance days the majority of miles are earned not by flying but on the ground. Infact using Matt's example you can earn airline miles at Safeway by using an airline affliated Visa card. So the programs are already far off from the original purpose that Matt refers. And if the airlines did not benefit from it, they would not offer it. When the airlines sell miles they get the money right away and can invest the money years before you get to redeem them (assuming that the miles are not expired or depreciated by then). Even with alliances, elite benefits are structured such that elite members have a strong incentive to fly with the carrier on which they are elite.

Back on the original topic, I still like Catman's idea and also his idea of making web sites more user friendly so that you can for example register for a promotion by clicking on a web site. Some of these changes are already happening, and more such changes are likely to come. I look forward to them.