I think in every airline there is policies and procedures. I feel bad for the old man too, but what makes you think the agent should upgrade the silver as opposed to the Platinum??? If it is so necessary to have a first class seat you buy it and dont risk the chances of getting an upgrade or not.
Its just like if you go to NW with a CO platinum, they will obviously choose the NW silver before the CO platinum even though its a lower status. why? because that is a NW account and not another airlines.