We've had two babies born there (last in 2016 - things may have changed), from our experience:
1) In Switzerland it seems customary to spend 1-2 days in hospital after an uncomplicated natural birth. The room option you mention is about staying in a private room, where your wife would be by herself without any other mothers. The default option (without fully private insurance or paying for the room upgrade) would be a room with something like between 2 and 4 mothers in total. If your wife prefers privacy / quiet / being alone with the baby then this can be a good upgrade. If your wife would prefer sharing a room with 1-3 other women and their babies then not required. It will also depend on how busy it is, as I would imagine they naturally spread out the mothers as much as they can in any case (especially in the current situation).
We wanted privacy and quiet (relatively speaking with a newborn) so took the private room. I could also imagine people who don't enjoy quiet and solitude would prefer the shared room. Ask your wife what she prefers

Also decide if it's worth the money.
I'm not aware if the food is upgraded. I think the food was still the same. Also worth noting this is only about upgrading the room (as far as I know). The medical care etc all stays the same as per your insurance level. (just to reassure the medical care we received from basic insurance was perfectly fine - you just don't get to chose which Dr you see and when.)
2) You can the photos taken on their website! Here's the link for the October babies:
https://www.stadt-zuerich.ch/triemli...e/2020_10.html