To be honest, I don't work for any airlines. I am either a lowly or no elite on all airlines. All I want is that I can travel at a price that I can afford with some reasonable rights such as requesting a window seat and seat assignment when I travel with my kids.
I said it too many times that mileage runners will be running the full service airlines to the ground if such changes are not imposed - and nobody cares. Major airlines rely on the business travelers who pay premium fares for their flights. If the FF programs becomes dilutive because of the the runners, there'll be just fewer and fewer incentives for biz travelers to pay premium. 'Nuff said?
As for deflections to other airlines, it doesn't seem the major airlines care. It all comes to a full circle at the end. SWA can become the #1 airline in the world; but I still don't see myself flying SWA.