Right sizing is in the eye of the beholder. With many folks in AUS bolting to AA last year, UA needed to make some capacity changes, especially after adding SFO frequencies. So the RJs came in on the EWR route.
Upgrades have ALWAYS been hard on this route given tha the 735s alwas had 8 seats only, as well. Problem is that when you signal business travelers who can't purchase F outright that their upgrade chances are very low, they will bol for other options (like AA, DL, or even SWA)...and then you lose those above averag yielding customers, which will lead to lower yields, further downsizing etc.
At some point, UA will have to do something to entice business travelers flying AA out of AUS to come back over...and flying RJs for 4 hours in E+ without wifi and ifemisn't going to cut it.
I am flying this route myself a lot and my flight last Thu was booked 5 paid F and 1 upgrade. Several GS joined me in steerage....That situation won't last...