I had this happen this weekend.

On my trip from Austin to LGA this weekend through Houston, I got upgrades on the IAH>LGA>IAH legs (which were the important ones). I did NOT get an upgrade on AUS>IAH and was around 6th in line when I checked the list several hours (maybe 5 or 6) before check in.

I have plat/1k but was on a fairly low fare class. Either there were 5 plats on a relatively small plane (possible) with higher fare classes, or my boarding pass showing "Gold" accurately reflected my status as viewed by the Continental software considered.

The upgrade from AUS>IAH is not important and I am not whining about it. Just wanted to share an experience that lends credence to the possibility that it is more than just a "superficial glitch", as I am sure Continental is telling everyone. Again, could have just been a ton of platinums on that flight, but I am GUESSING that isn't the case.