I don't think most FAMs are trying to exploit their LEO/security-related status to get a low-grade domestic upgrade; however, the airlines should standardize their upgrade process and then this issue would arise far less.

As things stand currently with most airlines, the upgrade process is so inconsistent that even transparency is no guarantee that the airline's official upgrade process is adhered to. That said, transparency is perhaps the best approach. However, asking for transparency is wishful thinking when "security" is the excuse of the day for so much.