I don't think that any of us are saying that fare code should trump status. IMHO it should continue by status level first. However, like other airlines I think it should be than based upon fare code, which represents what someone in a particular status level has paid for that flight.
Now in doing so that would be a negative to me. So while personally I would prefer to see the current upgrade process that goes by status and then date of request, I would see fare codes as a more fair way.