In my experience, the writer gets it somewhat wrong. Most people weren't doing mileage runs for the point — it almost never pays to go to Amsterdam, even for $500, just to earn part of a free ticket to somewhere else. The mileage runs were for the miles to earn premier status, which gives you free baggage, lounge use, access to upgrades, etc.
But basically the airlines are finding that frequent-flyer-mile programs are bleeding them money, and they'd like to close them down, but they don't dare. So they're just making it harder and harder to earn free tickets. They're also trying to get you to buy magazine subscriptions and other non-flight things with your miles. (I suspect they get some of the magazine subscriptions free, because magazines are so desperate to keep up their circulation for advertisers.) I am bombarded with pleas to buy magazines with my miles literally on a daily basis.