Swiss first class awards will only be available for Miles&More Senator & HON Circle members starting on January 1, 2014. Miles&More made this announcement today on their web page here.
Upgrading from business to first class is still possible for Miles&More base and FTL (Frequent Traveler) members. You can only book Swiss first class awards by phone starting on January 1, 2014.
It is quite clear that Swiss first class awards will no longer be available for other Star Alliance frequent flier programs. The only question remains, how long will it take for Lufthansa to remove their first class award access.
This is very unfortunate development and I fully expect Lufthansa first class to become only bookable for Miles&More Senator and HON Circle members.