One thing you should take into consideration as well -

As a 1K, you and your family members on the same PNR will all be at the same priority on the waitlist for upgrade. However, as I saw on a recent trip to Hawaii that because they didn't have 4 seats available for upgrade the system kept skipping us and going to the PNR's of 1 or 2 people below us on the list.

So if you can "buy" guaranteed seats for half of your family and then look to buy upgradeable tickets for 2 or less people including yourself on that PNR you should have better luck.

Good Luck!