My wife & I were heading to AKL (from SYD) a couple of years ago; I was going for work on full fare economy & my wife was on an award ticket. At check-in, I was told that I'd been upgraded to business - I graciously declined as I was travelling with me wife and we wanted to sit together; my wife was urging me to take. I said she should take it since she'd never flown business class - the lovely QF attendant made a call and in quick time produced 2 b/class boarding passes. ^ Nice one Qantas!!
I've been ditched by work colleagues before who've been upgraded - I would do the same. Never feel guilty about - feel lucky and enjoy the experience
Cheers, gb.