I like your reasoning, but the phrase "at no extra cost" is subject to interpretation. Certainly, anyone using miles+copay has extra cost, and is not exempted by this clause. What about eVIPs? Is expending one considered a cost? I'd think not, but it certainly possible to interpret in this way.
I think it's worth bringing this to the attention of AA, perhaps...for all the good it will do. I've been through sections of that document (regarding connecting travel and single tickets) but had not seen the excellent part you quoted.
Does anyone here know if this has not been applied to BA (I know I can ask there, but I didn't want to split the discussion, if possible)?
Cheers.