I thought this was going to be a thread about how one could book 10 PNRs with 9 tickets each to Europe/Asia/wherever very far away and cost a ton of money whereas people like you and me who often book shorter-haul tickets, often one-way, and do so for 1-2 people per PNR, get access to a lot less seats and cost AC a lot less money.

I agree you've identified an issue here, but this seems to me more an issue of poor revenue management by not allowing some I space than an IKK issue. As jaysona said, I think most people want confirmed J at time of booking, not a slight variation on aerolotto, and very few reward bookings are made day of/day before the flight.