Yet people still chase points.
I was never going to be a premium Flyer (happy down the back) but I've given up chasing points. Not worth the trouble and the stress.
There is a point to which airlines can cut reward seat availability and have no impact on the business model...
It's a balancing point which they try to manage as all businesses do-maximizing profit whilst minimizing customer dissatisfaction.
I like many acquire credit cards and have loyalty with specific airlines because Singapore historically hasn't been too bad in offering reward seat availability.
If it gets to the point where as you have mentioned it's all too hard, I like many will happily move on to competing airlines, or stop chasing points all together impacting the credit card model, impacting their profits..