I tend to agree - we all benefit from the fact that miles are nebulous. They aren't property, they aren't a coupon, they aren't a promise of future services, they aren't a contract, and they aren't a currency. Legally, they are gray, squishy nothingness. This benefits the airlines, their partners, and the travelers.

The main reasons it benefits us: the aforementioned tax reason for one - the IRS can simply pretend miles don't exist - plus it allows the airlines to run ridiculous promotions (to the benefit of people who pay attention, like us) without carrying those miles on their books at anywhere near the value we'd get out of them on redemption.

And while the airlines aren't running many CC transfer promos, they are running regular promotions like mad. ^