I don't think it would be popular on longer flights, especially with the business flyers. Somehow, I can't see a pompous, jewel encrusted, titanium level frequent flyer who thinks he is entitled to a first class upgrade every time he flies riding on some rinky dink little plane from Roanoke, VA to Elko, NV. It seems like this kind of service (on the longer flights, anyway) wouldn't be "elite" enough to suit them.
Then again, who knows. Interesting concept, though. I'd be interested in hearing what others think.