Indeed, most airlines give bonuses to status pax. The reason is to increase loyalty.
But there are many different way this is applied.

For example, AF gives more XPs which is the way to achieve status. And they apply it alliance-wide.
BA does not give more TPs (to achieve status) but give many more avios if you fly on BA metal.
Take the example of a HKG-LHR flight for a BAEC status member. He will get many more miles flying BA than CX.
SO double motivation: 1) fly more to reach status and earn more miles 2) fly more on BA.

On the other hand a MPC member will get the same on CX and BA.

The revenue-based programs (FB, US Big 3) are terrible for people who fly for leisure though. From Europe for example, as an FB member, you'd get 2.5-3x the miles flying discount J on a MU/CZ fare over a AF/KL fare, although the fare bases mirror each other.

For MPC members to get the same on CX and BA is...not smart, but not the worst loyalty management either.

MPC members do not earn more CPs on QR when flying economy fares, right? For example, RT HKG-DOH-LHR on QR (LMV fares) gets you 60 CPs, but RT HKG-LHR nonstop on CX (LMV fares) gets you 90 CPs. In comparison, when flying business RT HKG-DOH-LHR on QR gets you (60+45)*2 = 210 CPs, while RT nonstop HKG-LHR on CX (D,I fares) gets you only 180 CPs.

It's inescapable in a stage length points-based system...if you're based in the hub, you'd almost always be flying non-stop on the flag carrier.

Loads of people benefit from it though. Residents of PRC, USA, Canada will benefit because they usually fly through HKG, and prices are depressed from the TPAC fare wars. Residents of South Africa, Nepal and Sri Lanka who make above average incomes, or people who are willing to reposition there for the generally cheaper fares. If CX caves in to pressure from the current PE/J Europe-Asia fare war, EU residents will benefit too. For these people, the cost per CP may be marginally cheaper, or even peanuts in some cases.

I live in SIN and I advocate loyalty to Oneworld. If I lived in HKG, I would advocate loyalty to *A/ ST.

That's a stranger idea...

At first glance, yes, strange.

At the second thought: Accepting a transit can save some 30-40% on the price of a ticket. For low fare classes Y, it won't break the bank and is not worth the extra time, though when flying J/F, it's a lot of money, especially, when you have to foot the bill yourself :D There aren't many customers paying me some EUR 700+ for a half day, privately, so before tax some EUR 1400.

On top of the lower ticket costs, you get the option to select a better airline than the home carrier.

Not to say, when flying the not-home carrier, I do have the impression, you get better treatment from the crew. Which in turn might explain, I do seem to be more happy with CX than many HKG based hi-so's.

Though, it only works out, when you regularly fly the same route/airline, or at least the same alliance.