I can't recall seeing anywhere where fare class comes into play on the international upgrade waitlist. And further, CO.com indicates that it's only status and then first-come: Waitlist is processed first by Elite status (Platinum, Gold then Silver) and then by time of upgrade request.
http://www.continental.com/web/en-US...e/default.aspx
Probably should have done your homework...

Of course, there's no co-pay on the H fare, but you should always do the math comparing the various all-in costs of upgrading. If the H fare was less than, say the W fare + $900 r/t copay, then going for the H fare was not necessarily a bad gamble. Just turns out you probably lost this time.

If the H fare was still more expensive than the lowest fare + copay, then you made a bad decision based on the mistaken belief you'd have a higher priority on the waitlist. Certainly there is some value in a higher priority that may be worth paying for (e.g., domestic EUAs), but not in this scenario.