Lufthansa certainly ain't! In fact, they have a myriad of booking classes that reminds one of the Indian caste system, and it's equally despicable. If you buy a deep discount ticket from Swiss, which is now part of Lufthansa, then you're akin to a jet set dalit: there's no way to get an upgrade.
For my future reference, here are the booking classes that do not allow Miles & More upgrades within Europe: X / T / E / L / I. For intercontinental flights, the same applies to classes X / W / E / T / I. Incidentally, these are subcategories of economy class. The eco ticket in V class that I booked yesterday for my trip to Athens in two weeks' time fortunately allows for miles upgrades.