In my opinion it is quite clear.
The airline has all data and is using the data to make a decision about which flight is cancelled. (I expect they are very good at minimizing loss of revenue however they decide to do the accounting).
Is this exactly the same as minimizing inconvenience to passengers?
I suspect it is not.
Usually, I think so. The inconvenience to a passenger who is flying a long-haul that operates once a day is far greater than the inconvenience to a passenger who can be rebooked the same day. At the same time that passenger who can be rebooked the same day doesn't need a hotel, transportation to said hotel meal vouchers, etc. (possibly for multiple days if it's a non-daily flight). Instead, they can just arrive at the airport at a different time.
Of course if you have a daily flight with 50 pax on it, it may be financially more prudent to cancel that and not have to rebook 150 pax on a shorter flight but I don't expect that is a common situation with KL at least.