Hi 100,000miler,
as I expect to see an airline based in China and India joining *A in the near future, I don't fear that *A is falling apart.

However, I agree with you that the level of integration will never reach the level what was intended as *A was founded. But was this a realstic approach? Most of the airlines are owned and operated independently, therefore it makes a difference if you board an AC or UA flight.

When it comes to FFP, most airlines run their own; in fact you have the option to choose between 15 different FFPs. Each programme provides unique and valuable benefits, BUT everyone offers designated *G and *S benefits. IMO to join the FFP of the airline you are most likely to travel with most often might be a wise idea.