Nope. You say you note that the existing system is going to...

Nope. You say you note that the existing system is going to operate. So this is untrue and missing the point "Hence, value of points downgraded as you need double the points then what you need under the current system." The Classic reward still exist. This just gives an alternative way to use points at a lower premium than previously.

Old system:
Plan A - Classic rewards.
Plan B - Points plus pay at huge premium maybe 5x (maybe more maybe less) the Classic Reward system.

New system:
Plan A - Classic rewards - exactly the same. i.e. same cost and same number of seats.
Plan B - Classic Reward Plus - pay a premium to CLassic Rewards which may be 20%, may be 50% could be double but also (very occasionally) could be at a discount to Classic Rewards.
Plan C - Points plus pay at 5x (maybe more maybe less) the Classic Reward system.

So as a user, you've lost nothing, you've gained a more appealing Plan B

Yes Classic Rewards will always be Plan A, that hasn't changed. But now if I'm booking last minute or can't make the Classic Reward dates match, I have a better alternative, a way to spend points that I may otherwise struggle to spend, thereby increasing the value of that point.