It seems the question of “How much can a mile is worth” is to be answered by Etihad, who have announced planes to allow a Miles to Cash method.
The PointsPay system will allow miles to be converted into readies will be via an iPhone app and eventually through the app’s web site.
The miles will be converted onto a Points Visa PrePaid Card, which will should be usable in-store or online.
Roll-out is beginning in Q1 this year and should be available to entire Etihad Guest Membership by the end of April.
Conversion rates have not been announced yet, but this is a very interesting option. I think it will be safe to say the conversion rate will probably be very poor compared to redeeming for flights. But for those interested in money and not flying an airline again, this could be a useful feature.
There’s more info on the Etiahd Guest Web Site
