I think the mistake they’re making is tying it to handouts of in-game resources that can (and should!) be obtained through playing the game or just paying money directly.
VIP Benefits (all levels include all the lower-level benefits as well):
Level 1 Benefits ($5/month):
Pity Timer on getting Rares/Mythics from opening packs: after 10x packs from one set with nothing above Uncommon, your next pack from that set contains a guaranteed Rare or better; after 20x packs with no Mythics, your next pack contains a guaranteed Mythic or better.
Exclusive Avatars and Titles
1 additional crystal-purchaseable deck slot for each level 60 Planeswalker
Max health potions capped at 6 instead of 3.
Ability to set a “Favorite” Planeswalker that always appears at the start of the list of Planeswalkers if the Favorited one is a possible choice for a battle.
Level 2 Benefits ($10/month)
Pity Timer reduced to guaranteed Rare after 8x packs, guaranteed Mythic after 16x packs
Even more Avatars/Titles
1 additional rune-purchaseable deck slot for every level 60 Planeswalker
Max health potions capped at 10
Rune gains on Training Grounds are doubled (for both wins and losses)
Player-level XP gains from card mastery are doubled (just the rate at which they’re gained; total XP possible remains the same)
Ability to “Favorite” up to 3 Planeswalkers
Level 3 Benefits ($20/month)
Pity Timer reduced to Rare after 5 packs, Mythic after 10.
A couple reeeeally exclusive Avatars/Titles, maybe with art that isn’t based on cards in the game but other older M:tG art (gimme dat old-school Anson Maddocks art).
No health potions (or really, infinite health potions): you can just click “Heal” after/before battles with any injured planeswalker (not having it heal automatically, though, because you might want to start at low hp for “win at low hp” objectives)
1 additional free deck slot for every level 60 planeswalker
Ability to Favorite up to 5 Planeswalkers
increased (and/or possibly re-set, periodically?) rewards for Story Mode completion
Masterpiece crafting (should cost orbs and also some small amount of crystals or jewels though; or as an alternative, just make the 120-crystal Elite Packs also be non-dupe packs for players with this VIP level)
Some of the other VIP-plan benefits are fine - special offers/discounts, bonus mana jewels per purchase - just tie them to a specific level of VIP plan instead of some convoluted month-by-month increasing/decreasing thing.
But the core problem is that handing out stuff like runes. jewels, cards - stuff that is ordinarily rewards for playing the game - is backwards. The target market for VIP tiers is people who are already super-engaged with the game, and want to be able to play/engage with the game more. Handing out free stuff so that they can finish their collection faster, with less playing, is backwards. Instead you want to help the people who want to spend hours a day on the game to spend hours a day on the game, by giving them more space to build decks, fewer restrictions on how much they can play, more to do. Spending money on direct purchases of runes/jewels/cards/what-have-you can remain a shortcut for people who want to have everything while spending less time in-game to get it all.
As a side benefit to this approach, the devs won’t be tempted to reduce the rewards for actual play time in an effort to push people in the direction of getting a VIP membership.