For what it's worth, I'll offer my experiences as well....
In Aug. 2003, I flew in business class on an early-morning Iberia domestic flight from Oviedo/Asturias (OVD) to MAD. Given the sour reviews of Iberia that I had read, I wasn't particularly optimistic, but I was pleasantly surprised.

The IB ground staff I encountered were not conspicuously friendly, but they were pleasant enough, and were far more pleasant than the Spanair staff I dealt with on other legs of my trip. My AA Platinum status wasn't outwardly recognized as such, but "Sapphire" was printed on my boarding pass in several locations, so it clearly meant something (although what exactly, I don't know), which was nice.

The aircraft itself was a non-descript MD-87, and the C-class seats looked like AA's old coach seats, down to the fabric (blue and tan). Onboard, though, I was served the best breakfast I have ever had on a plane (except perhaps for a souffle on UA in coach, of all places) -- and this was only a 50 min. flight. The flight attendants were quite pleasant, and one female FA had the most captivating smile I have ever seen, which was a nice touch at 7am!

All in all, given the limited heights that European business class tends to reach, I was pleasantly surprised by Iberia - they really were not as bad as some have said - and although some will surely disagree, I found them to be much, much better than Spanair (e.g. the meal service on IB did not include pieces of whitish meat containing disconcerting black portions).