Some of the upgrades people may be referring to are when DVC members stay at non-DVC Disney resorts using points. Less people may be doing this now, b/c of the change to add a $75 (not sure the exact amount) fee on top of using A LOT of points to stay at a non DVC Disney resort.
We have been upgraded twice using points & both times were amazing:
Once at AKL a month after it 1st opened we were upgraded to the top floor non-Concierge, but one w/ the bigger balconies right next to where the giraffes eat. My son met the manager in the lobby while we were checking in & they became buds. We met the head chef at Jiko. We were surprised that it was their grand opening ceremony & the cast from Broadway's LK had been brought down for it. We were only there for 3 nights.
The 2nd time was this past February. We were booked to stay at GF for 2 nights midweek & then move to our desired resort BWV for 3 nights. This was for my mom's 80th b-day & she's slightly disabled but refused to act that way. She can't walk for long distances. I sent a fax requesting politely if possible, could we have a room closest to an exit to the main building where we'd be going to catch the monorail. I also had pre-ordered a special b-day cake from the GF Bakery as a surprise to be delivered to the room.
Maybe it was b/c of her b-day, but we were upgraded to concierge (closest building & closest 1st floor room to concierge area). It was the most wonderful experience ever.
The Concierge Manager told me that at the last minute they would rather upgrade a DVC member to a more expensive room, b/c they are more likely to be able to rent the cheaper room we had reserved to someone who shows up last minute. He said DVC members are their best ambassadors who will likely go home & tell everyone about their incredible experience.
You can't ask for an upgrade, but when those surprises happen, be very appreciative to all the CMs.
