"Popular cradle-style seats with 150 degrees of recline and 55 inches of pitch in the BusinessElite cabin on all transcontinental flights between New York and San Francisco and Los Angeles. These seats are the same as Delta's business class offering on 757-200ER international flights and offer personal on-demand games, music and movies at every seat."
The wording of that last line implies that they are promoting the seat itself and not necessarily the BusinessElite Service. I think the domestic medallion upgrades will process as normal. However, I will be the first to admit that a bigger reclining seat and wider pitch between seats for extra leg room greatly enhances the comfort and enjoyment of a flight. Take for an example the LAX-ATL flight. Even with the same transcontinental services, sitting up front on the 767-300ER is miles apart in comfort then flying in First Class on the 767-300 Domestic configuration. ^^ two thumbs up for Delta!