Couple points...
* First of all, why do people have to buy lowest upgradeable fare? That's most likely because you can't afford paying full J or you are forced by your company to buy the lowest fare. So you really think they won't notice a $200 increase on EACH ticket? [remember $200 is only one example, in some city pairs, it's a lot more than that.] The fare rules is exactly the same in most cases for V and H so there's really no reason from a company's standpoint to allow an employee to fly H simply because they want to upgrade.
We are trying to see whether AC will be successful in these changes and I am having a hard time how they will succeed.