I don't think their ff program should be targeting the average annual coach flyer. To get those passengers they need to offer competitive net fares via agents. If the fares are published, chances are that DL and UA will match within minutes. They should also offer more competitive pricing on open tickets for students including more luggage.
Re service, does LY have a dedicated phone number for high status accounts (with courteous, super nice agents)?
Perhaps they should add a few more perks for Gold tier members (including the dedicated line) Those clients are not as "invested" in the company and more likely to switch loyalties.
And marginalizing on the care aspect, once they are fully operational, they should have those reps call all high status accounts to let them personally know that they've extended their status and offer to resolve any outstanding issues with refunds or mileage redeposits...