Yeah, I think as a forum we're quite unrepresentative of the market available to VA.
Velocity as a program and VA as an airline are competing with Qantas and QF, respectively, not directly with any number of better airlines (dozens!) or programs (AAdvantage, Aeroplan, KrisFlyer, Flying Blue, Asia Miles).
Will these changes make earning Velocity status somewhat harder for me personally, as someone who flies mostly for leisure and would do things like judiciously choose low-cost business flights to optimise credits? Yes, absolutely.
Would I earn status any more easily on Qantas? No. And so, my general Oneworld travel isn't credited to Qantas, nor even would I use it for EK now that Aeroplan is an option.
For redemptions, is Velocity worse than Qantas going forward? Probably not, depending on one's use case. Velocity gives you access to QR J (including at the end of the calendar), some SQ J and W, and close to departure, there's plenty of UA transPac J and some NH J as well. Qantas gives you a smattering of JL/AA/AF/KL long-haul J, their own J occasionally if you're lucky, and perhaps some EK with a tremendous cash copay. And for similar distances, Velocity rates are mostly still marginally better than Qantas.
For status, is Velocity worse than Qantas going forward? Probably yes, especially for international travel, if only for the more solid Oneworld alliance benefits you can get on Qantas vs Velocity's bespoke partner arrangements.
For short domestic flights, is VA inferior to QF? No, at least for me. It's generally cheaper and I would have lounge access by Amex even if my status were to lapse.
Do any of these things matter to the SMEs or leisure travellers who are the market I think VA is satisfied to target? Not in the least. They're competing on price.
