I think I am with Mark that the real value to miles is to book something that wouldn't even be under consideration otherwise. I got to Vietnam for a few weeks over New Years. A first class ticket that *said* it would cost something like $9,000 (and which I could never afford), but which I managed, with 3-4 sessions on the phone with United, to book as a 120,000-mile "saver".

And I did use some miles in November for an East Coast funeral when United wanted $800 for a last-minute ticket. So there's that. But it sounds like your taxes on these turn the whole thing upside down. I think I paid $35 in taxes on the Vietnam ticket.