Greenbeard, first off: Awesome beard!!
Now to the matter at hand. Is that 5% at target only, or on all purchases? Also, isn't it true that the rewards can only be used/spent at target? Because if so, then that is not very useful, 1, because I don't have a target in my town, and 2, I would shop at more than just target even if it were available (maybe not a super target, depending on the prices).
Also, those gift cards are very specific, and as a good mustachian, I'm really never at those restaurants and stores, 1, again because only two of them are even in my town, and 2, because they are very anti-mustachian, in nature.
So I'm talking about buying a visa or mastercard gift-card from a grocery store, while the grocery store has a bonus offered by my credit card company. Does that work?
Now, if target sells visa gift cards too, and the 5% cash back does not have to be spent at Target, then yes, it may be worth it to go buy $1,000 in visa or mastercard gift cards on a target card, whenever I'm visiting a town with a target.