As someone who spent a lot of time flying in and out of YYZ last year, enough to qualify for AC elite, I might have some useful comments for you.

First, Aeroplan refusing to comp you has nothing to do with any Star Alliance restrictions. I am elite on AC, but their Star Alliance partner UA comped me this year.

AC Upgrades are simply not possible on low-cost economy fares. I have a briefcase full of AC upgrade certificates that I'll gladly sell to the highest bidder ... or would *I* have to pay *you*? I can't tell you how many flights I've been on as an elite passenger where I was stuck in the back of the bus with an EMPTY business class cabin hidden behind the curtain. AC pretty much refuses to upgrade unless you paid the right fare.

As elite on AC you don't get mileage bonuses like you do on UA. For instance, on UA 2Ps get 25% mileage bonuses, regardless of fare paid, on all flights. 1Ps get 100%, etc. On AC, you just get the miles flown IF YOU ARE LUCKY. On domestic routes within Canada, you often get 50% of miles flown. Now that just plain sucks.
Now qualifying is easier on AC, elite is at 35K (versus 50K for 1P) as someone else pointed out. And elite/super-elite memberships come with free Maple Leaf Lounge membership (which can be used to get into RCC and other Star Alliance lounges when travelling outside Canada on a *A partner).

One last thought, just to create the impression of impartiality. I spoke to an AC rep a couple of days ago who claimed elite would be getting better by 2003. (There were draconian cuts to elite after 9/11.) We'll see.

Good luck with your decision, and feel free to drop me a line (email address is in my profile) if I can answer any more questions.

[This message has been edited by CanuckFlyer (edited 11-08-2002).]