Iberia's business class is very nice indeed, and Madrid airport is terrific for transfers - huge but well organized, with great lounges.
I'll mention however that questions regarding the use of air miles or points should be directed to the particular airline's board rather than the Oneworld board. I'll let this remain for the time being but if there are further airline- or FFP-specific questions they should be addressed accordingly.
Gardyloo
Oneworld moderator