YOU GUYS ARE AWESOME! After seeing your guys' posts, I called back and talked to someone else who was IMMENSELY HELPFUL! Basically what she said, off the record, was that technically they have started training their CSRs to say that Economy seats when using an SWU can only be upgraded to the "next cabin" which would be Premium Economy. HOWEVER, she stressed that up to this day, it doesn't seem like that has taken effect into the system as she has seen it still upgrade to Business.
And the best news, with a bit of flexibility in my dates this awesome CSR was able to get me a round trip ticket all the way to and from, and then CONFIRMED in business....for the price of an economy ticket ($1300). pretty amazing. Best CSR i've ever spoken to, and I wouldn't have thought to call if not for all y'all here. So many many thanks!!