I wouldn’t expect it to bump someone else, that would make me very uncomfortable, but if an upgraded room was going to be empty otherwise. I am silver status with Marriott, basically their first level of their elite levels. I don’t think that gets you upgrades automatically, but the staff is always very nice in helping get a location in the hotel I will be happy with. But, even before I was silver they pretty much did that for me.
I saw a show that talked about tipping reception, and also that they make notes about customers on your profile. I don’t remember which hotel chain it was.
There is a big difference to me between getting a basic room or a suite. Also, an upgrade can mean a better view or a balcony. Sometimes I pay for the suite, it depends on why I am travelling, but when using free certificates or points, sometimes the suite isn’t an option. Like I will be staying at a Residence Inn in a couple of weeks for free and only the studio can be assigned to the certificate. However, I am staying at a different Residence Inn in Oct where I was able to reserve the suite. If $10 would get me the suite with ocean view in a couple weeks I might consider it. The person who helped me with reservations said there were many rooms available.
But, I am uncomfortable trying it if it is atypical at those hotels. I also admit, I kind of resent it if it actually is a custom. But, might be willing to play the game on occassion when the room really matters to me.
The hotel industry asks for tips at every turn. Wanting to take my luggage for me, insisting on valet parking, tip the maid, tip the waiters, tip for bringing me extra towels, etc.