No rant necessary, anyone who flies internationally on CO (and would prefer to upgrade) knows what an awful, awful thing HoKeY is. It stinks!
Just one little quibble-- the 3-day rule pre-dates HoKeY by a some time and in your story, the 3-day rule is the main culprit.
Additionally, there is no "talking your way into BF" notwithstanding one having a K-fare, and that too has not changed as a result of HoKeY.
Believe me, as far as I'm concerned CO can cram the 3-day rule into the same crevice as HoKeY, but in fairness, there was never a chance that you would be able to upgrade for a flight today that was purchased Thursday.
In fact, I don't know which flight you are referring to as the "redeye" but for tonights flights, Flight 28 currently shows:
J9 D9 Z9 Y9 H9 K9 B9 V9 Q9 T9
Assuming that is accurate, I would tend to believe that had you booked this flight Wednesday-- instead of Thursday, you'd be sitting in BF tonight for the same price.
Remember, I'm on your side, just sorting out the various CO BF upgrade enhancements.