In all my years of HHonors, I've never been upgraded on an award stay in a place that I normally would have been upgraded. Not once. I've also been told at a couple of places where they pretty much know me by name they couldn't upgrade me on award stays.
I know many others here have had different experiences, so I doubt it's a system wide policy, but may be for individual properties.
So yes, I believe them, but no I don't believe it's a new Hilton Rule.
Upgrades at Hamptons - Some Hamptons have suites, some have jacuzzi suites, so they can upgrade you to those.