I must not have been clear, sorry. I said "I probably would not mind getting a similar email for NYE if that is the case." Later I said I did not like the will not be able to upgrade part. As tkyoshi pointed out award stays are not normally eligible for advance upgrades, so it is possible the hotel was trying to give this opportunity.

My problem is not that the hotel gave the OP the opportunity to upgrade in advance, it is that the email was worded in a way that implied no upgrade would be given at check-in regardless of availibility. So, I agree with you.

I get plenty of "special offer - upgrade to a suite for $xx" emails, for existing reservations. I don't have a problem with that, however I have never had an email worded like the one the OP received.