I suspect this is bunk -- the vast majority of feline stalking sessions in nature are unsuccessful, and these are often motivated by hunger, so failure is more meaningful than it would be for a domestic cat. Also, how does one measure feline frustration? Cortisol levels? Brain activity? Is it distinguishable from the stress/excitement of the hunt?

Regardless, my approach has been to start by putting together one of those 3V lithium battery LED assemblies, wrapping it up in clear tape, and hiding it under the dog bed. This takes about 30 seconds of preparation.

Then I run the cats around with the laser pointer for a few minutes, and finally let them watch the dot "hide" under the dog bed, so that they reach in and pull out their prize.

Which they then attack for a few seconds, but lose interest in pretty quickly, because it doesn't run away or smell edible. But their predator success desire is met, I think.

This chase-catch-abandon cycle is their MO for flying bugs and mice as well, FWIW. They seem to enjoy it, although I am not sure it's any easier to measure feline pleasure than feline frustration.

My understanding is this is 100% true for dogs but not for cats, and the reason for the difference in level of obsession is unclear.

This doesn't really make sense to me. Most cats I've known react to such reflections without ever having seen a laser pointer in their life, for the same reason they react to laser pointers.

I feel this is just a cat being a cat. Cats are hardwired to chase any small thing moving quickly. Their eyes are great at detecting contrast, and a bright light has a lot of contrast to interest a cat. They chase it because they don't really understand it's not prey and just a reflection. That the cat lost interest as it got older is perhaps it just being old and less exuberant.