Lufthansa has changed the whole upgrade procedure and status is no longer important:

LH has confirmed that upgrades are now by booking class only, followed by status:

Non-member in J
FTL in C
SEN in D
HON in Z

Upgrade Listing would be:

Non-member, FTL, SEN, HON

Someone who never flew LH would get the upgrade before any status member as long as he is flying in a higher booking class. Going forward, I would not expect to see any upgrades for HON in D, Z and P as there will always be people in J and C who get upgraded first.

This is part of LH's new strategy 'Move' that intends to upsell customers to higher fare buckets. Others have taken 'move' more literally and have started shifting their tickets to other carriers...