There are many different opinions about Iberia here. I've taken them many times and had a problem only once, when a ORD-MAD flight was late and I missed my connection to ARN. I was rerouted, no big deal. But there are some horror stories, primarily with problems with the MAD ground staff.

Their A340's are fine, the on-board service is ok but not enthusiastic, the food and wine are pretty good, and the IFE is fair. I think the MAD airport is reasonable for transfers.

Your AA status may help a bit if there are problems, but I wouldn't count on it.

My advice is to stick with what you got. I've got my own horror stories with BA and AF, so be careful about making a decision based on a few people's experiences. I take Iberia regularly, and intend to do so in the future.