" this loophole is being abused by these folks - who appear to be leisure traveling award travelers, in my observation"

You're coming aross a bit DYKWIA there mate. Anyone in the lounge has a right to be there, and frankly it's none of your business whether they're there on business (yes, I know your business is terribly, terribly important) or leisure, and whether they're paying in award points or other people's dollars (or do you pay for your own flights?)