homey, i think there are obnoxious people everywhere, with or without a status.
While I agree with most of your post, I do want to reiterate what previous posters so eloquently stated: when I was in mid-20's and just started traveling, i would sit in the back, in the middle seat, and stay at Motel 6 (literally). No complaints, i was happy to travel and see places. And i would feel great no matter when or how i got there.

Now in my mid-40's, no more! i've seen places, and how and when i got there matters.
After 20 yrs of travel, i've learned there are cetain things which will make me more effective and productive (i travel for business, my clients pay for me to come and solve problems) when i get there. That includes restful night, upgraded room or not -- but, based on my experience, I stand a better chance to get a good night sleep when upgraded. Ditto with the flight - FC is a lot easier on my old body.
so, do i feel special? not really, but i care about the treatment. do i feel entitled? not really, but i appreciate the perks.