Our experience Feb 2015
I am not sure if/how they would upgrade on F&F rate. My stay was on points, and I was told if I paid $70 to upgrade to a club lagoon view, I would be upgraded to club ocean view. The cost between the king room I had booked with points and the club lagoon view room was only $64 at the time of my stay, so it seems that I mostly paid for the entire upgrade to me.
I am still glad we did it though. It depends what is important to you. I think that the only rooms with a balcony are the club ocean view rooms, and having a balcony was important to us. I suggest contacting Concierge Adolfo, and he will assist you in choosing your room and whether he can offer an upgrade.
The food in the club was very good--morning and evening only, no lunch or access in the afternoon for beverages.
I have Platinum status, and not Ambassador status.