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I agree, but there are ways to be smart about it. Paying up front for first class usually means you get fucked, but if you upgrade just before the flight, you can often get a steep discount on first class depending on how booked the flight is. Airlines will let you look at a seat map, and that will give you an idea of how full the plane is and how many seats are available. Sometimes you will just have bad luck and the upgrade costs are similar to full price, but more often than not I've upgraded for pretty cheap, and a few times the cost of the checked luggage is the same as first class where checked is bundled.
It depends, and it's stupid that there's so many hoops, but in their infernal quest to fuck customers over, they created their own loopholes.