I think the issue is that upgradeable PEY is priced too close to decent business class on other airlines, and non-upgradeable PEY is too expensive vs. Y with full miles.

I just checked for HKG LHR return for the last week of May. The V class fare is >HK$12k for non-stop overnight flights each way. Not upgradeable but full miles.

The equivalent PEY non-stop non-upgradeable E class fare is >HK$22k and is no longer available for overnight departures so I have to leave in the afternoon instead.

The R fare for those of us who wish to upgrade is >HK$30k for non-stop overnight flights both ways. But no upgrades to J are available any more.

Qatar is offering similar flight timings in D on the same route for >HK$31k. And the connections are reasonable - 2h50min outbound and 1h return.

So I have shelled out an extra HK$9k to try Qatar.