I'm putting on my asbestos body suit ...

I think airlines should continue to award MILES as they have in the past, based, in general, on the total number of miles flown. And of course the airlines should award a minimum of 500 or 1000 miles for short flights, since the hassles associated with a short flight are nearly as great as for a long flight, if not greater (for example, short flights often are in smaller planes with less room). If the airline wants to award bonus miles for flying a new route or for buying pudding or whatever, that's fine. Awards should continue to be priced in miles.

However, I think airlines should decouple qualification for elite status from the number of miles flown and/or awarded. Instead, I think airlines should begin tracking the total amount of dollars spent for flights, and award elite status based on passing a certain dollar threshold. (I say this despite it being certain to not benefit me -- I always buy nonrefundable tickets for my flights; if I have to fly on short notice I either use miles or Priceline/Hotwire.)

This seems to me to be the best way that airline FF programs can meet the needs of all their stakeholders. Awards would continue to be based on miles flown, but priviledges such as lounge access or complimentary upgrades would be based on dollars spent.