I believe the wording has changed, since I too was firmly of the belief that my WP wife's upgrade request which I made (not travelling with her) would be treated at my priority. Didn't happen in real life, so I looked at the website again and noted what appeared to be changed wording.
Frankly, this really irritated me. It seems fair to me that WP1's family members should get to share what little love is on offer occasionally.
Red Roo, if still watching this thread, here are two more massive Qantas annoyances from this WP1 (off-topic);
1. The $40 service fee for changes via phone. Sometimes with my routings and fares, I cannot make changes online, so I ring and the conversation goes;
"Hi, I'd like to spend $1000 to upgrade MEL-SYD return from cough Red eDeal to Business"
"Sure, the fare difference is $1000. Oh, and a $40 fee because you used the phone"
Don't know why this nickel 'n' diming infuriates me so, but it does.
2. Sometimes I book separate PNRs for the same trip for WP family. Even if I link my bookings with them, I still cannot select us all in row 1, just me, and they can't do it if I call up. (Same PNR is no problem - then I can do it.)
3. The P1 points/SC calculator is STILL broken and has been ever since P1 was launched.