If you and your fiance were on the same record, you should not have been upgraded. EUA is not supposed to upgrade if a non-elite member is on the same record as an elite member.
If your fiance was not on the same record, what did you expect to happen? It is EliteUpgrade[/b]A[/b]utomation. The upgrade occurs automatically. If you were on different records, then yes, you should not have entered your Onepass number.
As for giving the person in 8A your F/C seat, the agents were correct in not doing that. If you gave up your upgrade, it should have gone to the next elite member on the U/G list.
Instead of pleading with the agents, it would have been much easier if you had waited until you were aboard the plane and just offered your F/C seat to the person in 8A yourself. That eliminates the G/A's from the equation.
Bottom line is that you only have reason to be upset with CO if you two were on the same record. If that is the case, then yes a letter is warranted. If not, then you just learned a lesson on EUA.