Whew. When I read the thread title, I was thinking this was another "enhancement" to Gold status. Would you like a crappy standard low-floor next-to-elevator smoking room with two double beds or would you rather go down the street to find your breakfast?

Clearly the "or" in this case is used in the guests' favor: no matter what kind of facilities the hotel has (or whether the lounge is open), you get breakfast - independent of whether you received a room upgrade.