We had an award flight with Alaska miles last year and we never received an offer to bid for an upgrade to Saga. They also had very few seats in economy available without paying for them, and we picked the very last row of the plane, which was free with a window and aisle seat available and it actually wasn't that that bad given the relatively short flight from BWI---it reclines as much as the other seats, and you don't feel bad because you are not leaning into the person behind you. They did send an email that stated that "We noticed you’ve selected a seat towards the back of the plane, but did you know there’s a way to make your journey even more comfortable?" with an offer to buy an extra leg room seat, still in economy, but we were free to buy that seat when we cashed in the miles. Flying from the east coast several times, I have found Icelandair to be tolerable and it is a beautiful country to visit.