I think you'll find lots and lots of discussion about this issue on this forum. Basically, it is United's way of screwing over their elites. They figure that as a 1K, they already have your loyalty, and so there's no incentive to give you cheaper upgrades because you're not going anywhere anyway. The other theory that some have speculated is that if you're seeing upgrade for cash offers as a 1K while your waitlisted upgrade hasn't cleared, you're going to be pissed off if it's for a low amount. Therefore, they show a high amount to 1Ks to make you feel better when non-status people get lower offers. I guess they hoped nobody would figure it out.

As many others have said - I really have no problem with them trying to sell upgrades. But at least give me the same offer you're giving everyone else.