In this case, I'd say you probably will end up having to dispute the charge.

1. The upgrade means nothing. They chose to do an op-up.
2. Compensation in the form of a 1-way upgrade is also useless, as it would require the OP to buy another very expensive ticket to use it.

In this case, a lot of money was spent to ensure comfort, and that comfort clearly wasn't provided. The only acceptable response would be a large refund. I'd even go so far as to suggest a full one-way refund, if only to ensure customer goodwill. I'd send a letter, and wait 2 weeks for a reply. With that much money at stake, they'd better answer you quickly. If you haven't heard anything in that time, call AMEX. That'll get you a response from CP.