I don't really understand how this makes Qantas any more useful to passengers at all. It just seems that they are giving in to the competition instead.
It doesn't make QF anymore useful. It is more about locking in your loyalty through QF Frequent Flyer. There are now more places to earn and burn QF points so QF hopes you'll continue to fly with them domestically and to the USA. It is not about growing what we used to know as QF Int'l at all.