No capacity controls means just that...............no capacity controls!! Obviously there must be an error with the PH Tokyo, and maybe the reason that other poster in the "Free Nights" thread was unable to book his award at PH Tokyo as well. I would bet that putting a call into a GP supervisor would get you an award at PH Tokyo, as I don't think I recall them exempting any properties from the capacity control eliminations. And you are correct that if they are still offering Passport Plus awards, then something is DEFINITELY WRONG. Those should all be gone now.
And you may find it hard to believe that they would do it, but that's what SPG has done for years and Hilton and Marriott recently matched. So I'm sure there was some competitive pressure for Hyatt to match their competitors in this area.