Hey, pal, it is the WWII generation that created this mess. The "50's generation" is going to be the first to see all the bennies cut. Your generation is going to see them cut much more. Sorry...blame Grandma and Grandpa (again, just like the OP).
Regarding the OP...how come Grandma couldn't go back with the kids and let the son/SIL come up front until they are quiet? Would that not be the same thing except in reverse--letting a passenger move from one cabin to another while trying to quiet a child? Would anyone object to a swap of an F pass. for a Y pass in this case? My thinking was if that family were considerate, this is exactly what they would have done first, if they were allowed. Y passengers might be happy that the family is making an effort, F passengers (I would think---seems to me a lot of F passengers have hair-trigger tolerance) should not care.