Looks like to me there is no hope in hell of any action from FOS. The Citi T&c 6.2 says that they can change the reward redemptions without notice. It only says 90 days notice to change the reward earning. This is no different to changing the value of the toaster from 50,0000 points to 75,000. The FOS is just going to laugh.
Our perception that the card was earning 1 velocity for $1 spend wasn't really correct, but that is the way I viewed it too. I Also have lost a few points so I am somewhat pissed but I won't be throwing the card away. At $1 spend for .75 velocity points it is still one of the highest earning cards out there, and because I have the Signature free for live it's still an exceptional deal.
for Visa cards, only ANZ Black, and Virgin cards are better value on earn but the annual fee is quite a lot.