My husband and I are both 1K's and have had an awful time this year getting upgrades or even international business class awards. Flew NRT to SFO last week in econ plus. I split our awards into one ways as I knew when I booked them that our chances of getting business class were between slim and remote. Got it outbound only.
Also flew Continental to Palau from Tokyo in business class. Having 1K status (Mr Karen2 is also a Million Miler) meant nothing in terms of the order of choosing a meal. We were dead last.
My big hope with the merger is that some of the Micronesia awards with Continental will stay the same and not run up to Star Alliance cost.