How to fix Elevate in two easy steps.
1) Elevate points accrue at 5x(fare), I believe. Create status levels based on numbers of flights and have the benefit be the multiplier goes up, perhaps to 6x/7x.
2) Allow Elevate points to be used to purchase day-of-flight upgrades like cash is today.
This gives people the ability to spend their points to upgrade (and from what I've seen, VX longhaul sells out most of the time, so the financial hit is minimal, at least points get burned off the books) and rewards loyalty (by making upgrades easier to attain for "elites").
VX isn't going to get any meaningful partners outside the Virgin group, though, for obvious reasons, the same way WN doesn't get them. It's one thing to be AS, who covers regions (Alaska, Pacific Northwest) other airlines don't. But everyone flies to SFO/LAX. What's the point of allying with VX if you're AA/UA/DL? Why would you let VX into your alliance?