SO you can't cancel&rebook without $50 penalty from your flex rate BUT you can cancel and move without penalty to a different hotel which could be another competitor chain.
This is never going to work!

If hotel is at low percent occupancy in the area/hotel 1-2 weeks out and drops rates, then that is half the point of booking flex rates. If hotels do this blocking rebook to cheaper flex, we will simply cancel and book in a different nearby hotel so hotels will be worse and not better off

Booking a reservation at 9-11 months out for a popular hotel is sometimes a must, even is not a seasonal high usage date like eg thanksgiving, Easter etc

We all book flex then as plans may change, and also know that as hotel are unsure of demand that far ahead, these early flex rates are often higher than they could be and I find hotels set more realistic flex rates about 4months out, at which time I look to check and rebook
In fact even if plan 11months is firm, eg anniversary stay, even ADR/BAR rates could be set unreal usually high, so I ignore , use flex and look to switch about 3-4 months out when the hotel properly sets rates for my date

Further having locked in a "maximum" cost a year ahead, 2-3 weeks out if prices are adavantageous I cancel flex and book cheaper BAR/ADR non-cancel rate

AND if as article says if will cost $ 50 to cancel a flex rate, on possibly a $100 room, then no one will book flex months ahead anymore, which gives hotels no idea of occupancy on the night, and will force hotel to lower rates to fill their undercooked inventory making booking early flex even less likely by guests