That's complete BS. If you didn't make the next level then you don't earn the next level.
WGFE ..Want Gold Fly Enough, WPFEM .. Want Platinum Fly Even More
Giving away status to people that according to the requirements did NOT make the level is absolutely a slap in the face to the people who really earned their status level.
Upgrades are already scarce and artificially increasing teh competition for those seats isn't right.
Flame away....