It makes perfect sense from a development standpoint. It's IHG's only non-lifestyle upscale brand. It fits between Holiday Inn (upper midscale) and Kimpton (upper upscale) in the development ladder.

All IHG Brand Explained (by IHG): https://ihg.showpad.com/share/LkkYNuk61VHgkb6EAYKhF

Whether the existing Crowne Plaza hotels are living up to the ideals of an upscale property is a completely different conversation.

Or, perhaps the people with issues are simply misidentifying it as an upper upscale brand. It's not. Here are examples of upscale brands that are also classified at upscale: Hilton Garden Inn, DoubleTree, Courtyard by Marriott, Hyatt Place, and Wyndham.