No, it's not a flaw. The new eUpgrade system was designed specifically to prevent the ability to upgrade anyone on the same flight that we used to be able to do with the paper cert. It was discussed in detail in numerous other previous threads. AC called it an enhancement. I along with some other FT'ers would call it something else.

The only plus is that the nominee may request upgrade even when not travelling with you. However, one is allowed only a limited no. of nominees and once nominated, they cannot be removed until the end of the programme year.