Blues had two great chances to take the lead when firstly Clinton Morrison, partnering Walter Pandiani in attack against his former club in Emile Heskey's absence, shot wide when well placed and again when Upson could have done better with a free header in the box.
"I think the game hinged on the first twenty-minutes when we had two good opportunities and didn't take them," Bruce said after the 2-0 defeat.
"At this level, especially away from home, you have to take good chances like that and unfortunately today we didn't.
"We have played better than this over the past few weeks. In the second half we didn't create very much."
Blues were made to pay for their missed chances five minutes before half time when Andrew Johnson scored the first of two penalties that ultimately gave Iain Dowies side the three points.
Bruce was far from convinced at both penalty decisions made by referee Phil Dowd who many will remember from Blues' home game against Fulham last month when he also awarded a hotly disputed penalty from which Andy Cole equalised for the visitors.
"My first reaction to the two penalty decisions, and that's without seeing any television replays, is that they were soft," Bruce said.
"Thats three times he's given penalties against us in his last two games - which is quite unique.
"He's not my favourite referee at the minute and certainly from my view both decisions looked harsh."
Bruce, along with former Palace players Morrison and Julian Gray were booed throughout the game by the home fans but it was only what the Blues boss expected to happen before the game had started.
"I can expect it after what happened three years ago but there's been a lot of water under the bridge since then," Bruce said.
"I was thinking that it may have been forgotten about, but obviously not."
The 2-0 defeat at Selhurst Park means that Palace have completed a seasons double over Blues. Johnson having scored all the goals in the two games between the two sides this season.
"We've helped them if they stay up," joked Bruce.
"A's come back to haunt us too, thats for sure. To be fair to him though, he's done remarkably well. He looks a threat and he's got a great appetite for the game. I wish him well."