However the crew may be supposed to prioritize passengers, this was handled in a disgraceful manner. Whilst it is fine for the crew to make certain passengers feel that they are especially important, no passenger who is entitled to be in a particular cabin should be made to feel like a second-class citizen there. "You may be in Club, but you're not as important as the person over there because you're only a Blue, so I am going to prioritize his needs", or however it is put, is an absolutely appalling way to address a passenger.

You might, arguably, make an exception for op-ups, who are there by luck, but even then any comments like that should be done very discreetly and very apologetically, if at all. ("I'm terribly sorry, sir, but I have to let this gentleman choose first", in a whisper.)