As an EXP, I am a little torn on this issue. First as an EXP it really does not impact me but if I fall back to PLT say after 2/28/2011 then having this option benefits me (assuming AA continues to sort upgrades by date of request and that I continue to travel mostly at non peak times). On the other end, when you look at AA's financial situation it can very ill afford to give up a good source of revenue. And a healthy AA benefits us all.
By I do agree that AA at some future point will begin to assign upgrades by fare class as the system now for the most part works in favor of elites buying the cheapest tickets.