1. True, AA did not have same deal to dilute that UA did, but they will bring a bunch of high status flyers from TWA over, so they will have quite a few additional elites for 2002. Yes, they will have a few more flights, but many of the duplicated cities for AA and TWA will be axed.
2. I think they should have waited until early Dec. as well - AFTER those that were close had booked their Mileage Runs. Now no reason to book a Run unless you are close to a higher level than you were for 2001. They will loose many of the flyers who take mileage runs at end of year PLUS those that will try to get Elite status on another airline between now and then.
3. It is a good PR move and probably not at a great deal of extra cost, BUT it will make upgrades, Award travel, etc. harder to get and more bonus miles awards to those that would have dropped down in Elite status for 2002.