Can't answer your question about upgrades, but have taken AA to Panama a few times this spring thru MIA. Have stayed in a few different hotels. Easy short trips, done in coach without issue. No food.
Buying food at airport to return stateside has only one choice (club sandwich not bad), so get something in town instead.
You can bargain at the airport duty frees, at least 10% off their prices, including alcohol.
I look at orbitz for hotel prices, varies greatly depending upon the week or days of the week. Marriott probably the best generally and American standards, but depends upon what you are looking for. Best swimming pool, then Intercontinental. We've spent as little as $120 at the Intercontiental with a good buffet breakfast. Need nightlife within the hotel, then Radisson..and get the rate with drinks included. NeedInexpensive, but reasonable then Plaza Patilla. Lots of expats is Country Inn by the Canal with a TGI Fridays.
To do: depends upon what you are looking for.... the canal for sure, hiking in the rainforest? 30 minutes away. Gamboa Rainforest Resort. Smithsonian has tours on an island close by too. Want interesting gifts for the "kids? How about butterflies, HUGE bugs, or a bat underglass. Then go to the Indian shops near the old YMCA...everyone will know it. First stall on the right when you go in and up the stairs of the larger building gave us the best prices by far. Walking tour through Casco Viejo with college kids...I have yet to do this.
Taxis really inexpensive. Fun place for outdoor cheap eating and is the causeway is Mi Ranchito, at the end of the causeway (3 island tied together by soil taken from the canal) is Alberto's. Outside and inside eating. Both places have great Sangria. If not strong enough, they'll fix it for you with their added rum and triple sec. Limencello was over rated. Manolo Caracolo in Casco Viejo is a favorite...no menu, just about 12 small courses for about $16. Wish I got the name of a type of Spanish wine they served, can't even find it on the web..and I'm not looking for the vineyard.
read the Panama forum on fodors, even if a bit old you'll get alot of info. Lonely Planet's thorntree site has info too, but caters to a younger adventure crowd. The Decameron hotel (90 minutes?) south of Panama City is a great all inclusive on the beach. We paid $50pp a night.
We really like it in PTY. Lots of Americans retiring there.
Pat