My philosophy when traveling with my wife in coach is "we're on our honeymoon". I've been on my honeymoon for 7 years. you never know what you get.
Seriously though, only non-elite upgrade for us was a package (London/Middle East) on BA that was booked through BA. They put us into the hotel of our choice, but when trying to confirm a week before the trip, the hotel said they planned to move us to another property. We called BA to complain (they were mad as well) and said they would "straighten out" the hotel. Day of trip, we called the hotel to confirm, and with the expected American-bashing attitude (sorry Merry), they said they are moving us to another property, period. Another call to BA and they rolled out the red carpet for us. Upgrade to a better hotel, business class all the way (4 legs), dinner one night on them, flowers in the room, etc...
I think it was not so much that they were spoiling our honeymoon, but they were embarassed that the hotel in question would not honor their agreement.
But, I don't discount the "honeymoon" stuff.