An extra charge for a 2nd guest in the room is not at all uncommon in Asia and Europe. I've had no problem using the "2nd guest stays free" benefit on revenue stays, and of course all Gold/Diamond benefits (breakfast/lounge access) apply to the 2nd guest.
My question is wether the "2nd guest stays free" benefit is applicable to award stays when the number of pts required is different for single/double occupancy.