But there is no loop, it's mainly a iterative funcion that tends to converge on 0, and then becomes ineligble for further iteration once the number of points goes under the amount of a minimum award of any kind, which for a Norwegian member would be a night at Radisson properties during a weekend?

On a more serious note, this can easily branch off into the discussion of why an award ticket is not treated as a fully paying ticket, as clearly the points have value and as such is "payment".

Or it could branch off into that other discussion that goes down the route of reasoning that since the airlines clearly do not award points on award flights they have temrinated the iteration, and thus any points awarded on flights by real cash should then have a premium on them in terms of points handed out to cover for the lack of the points on awards. Much in the same manner you calculate interest on loans using either simple interest or compund interest (and clearly the airlines choose the former on this topic).