Ya know, this has got me to thinkin'. I still use the cash out method (for Priceline) explained by DaveHanson much earlier in this thread. I had something like 140,000+ points I just cashed out using his method. My current point total is below 10 points! And I agree with other posters here that the 2% reward is the principal reason not to sock drawer this card. At least that's true for myself.
So I'm thinking, maybe this is a good time for me to stop using Priceline! One thing I hate is "stranded" rewards. You get up to, maybe, 12,000 points, or whatever, and they shift to 1%. Now you're stuck at 1% rewards to get the rest of the way up to the $25 minimum. Better maybe to shift on over right away to B of A "1-2-3", buy my gift card(s), and just go from there. Heck, if I can find the right gift cards at a register with a "gas station" MCC, I could even do better than with Priceline! For me, right now, I have a reliable supermarket source of Visa GCs at 2%. I know the MCC is good for 2%. Getting them reliably at 3%, from a "gas station", would take a bit of research and shopping around.
This seems quite reactionary considering nothing has changed for existing cardholders.
Also, your math seems off. $25 minimum is 2500 points. So I think you mean if you are at 1200 points then you are "stuck at 1% rewards the rest of the way." Yep, stuck at 1% for your next $1300 in spend. I'll take that risk considering it could be a long time before they change the terms.
Also, why buy Visa GC at supermarket at 2% to use for your other spend? Am I missing something? $500 Visa GC yeilds $10 in rewards @ 2%. $5 fee so you net $5 in rewards. Or just use a regular 1% card on your $500 of spend without the inconvenience of buying a Visa GC and you come out with $5 in rewards. Use a 1.5% or 2% everywhere card and you're even better off. If you're speaking from the BB angle, then I retract this point.