Thanks for the report - totally agree with your sentiments: the domestic add-on's are handled very badly by BA in terms of constructing business class fares. Was bitten back in Spring when the dom sectors posted as K on an I fare to Malpensa. Have been passing on the shareholder discount and using AA.com exclusively since for that very reason.
Surely, if you book business, then you should expect to receive Business UK benefits on UK Domestic, right? Notably, the dom add-on for ET is N class and at a fraction of the price of K, but with no discernible difference in value.
The EDI-LGW sectors of my AA.com booking for the weekend posted as D. Sorry, didn't mean to rub salt in to the wounds.