Some have accumulated huge points balances
Exactly, I'm +1m QFF over the last 18 months with another ~240k in the pipeline. I anticipate continuing to earn at that rate and while I'd love to extract max value per point on some RTW J tickets, that's obviously not happening soon.
Is it actually worth it to use point for status credits instead of cash?
I'm going to places I want to visit and just so happen to be flying to longest way possible to help maintain WP. They aren't quite status runs in that respect as I would have travelled anyway.
There's also a lot more flexibility on classic award routings when booking as a multi-city flight, yet the points cost is calculated on total miles flown which you can use to your advantage. The icing on the cake is the removal of cancellation and change penalties.
I always assume a point is worth $0.03 so the cost SC/$ is quite high if I compare with cash unless I have missed something.
Two separate issues at play here, but yes the $ per SC rate is quite high*, as it always has been on most Qantas domestic J routes.
On value per point, the SYD-ASP ticket exceeds your 3c per point target.
It cost 41,500 points + $174 taxes for a classic business award which will return 164 SC including DSC. If I had booked a comparable cash ticket I'm looking at $1703 for J which earns 200 SC including DSC. Removing the taxes, that leaves me with the option of paying $1529 or 41500 points = 3.68c per point.
And that redemption is earning ~80% of the SC that would otherwise be earned on the cash fare, which arguably increases the redemption value quite significantly (as that's not usually part of the equation when calculating redemption value of awards)
*if you value your points at 3c each, rather than what they actually cost you. If you were averaging 0.75-1% surcharge to earn 1 point per dollar, the actual cost per point is already significantly less than what you're valuing them at, and hence the $ per SC is much cheaper. On the other hand, if you earn your points through a credit card sign-up (e.g. ANZ 120k for $225) then the $/SC rate on the SYD-ASP itinerary is somewhere around $1.5/SC.