Why isn't the hotel compensated by corporate with my points whether I show up or not? What reason does corporate have not to do that?

I will now attempt to answer my own question. Here's my guess. Once you buy points or earn points or earn a free night certificate under the hotel's program, the hotel gets no benefit whatsoever to you actually using the points. They don't want you to use the points. They prefer that you just let the points or free night award expire. They would much prefer that their future room nights are filled with customers paying cash in new money, not people redeeming points.

Someone whose points or certificate are about the expire could, out of spite, just book a night at the Waldorf Astoria Maldives or Intercontinental Osaka or some other high end property just to be a jerk. Or the customer with the expiring points or award certificate might speculatively book a room night somewhere else even though the customer is 90% sure he won't be able to make it, because he's going to lose the points/certificates either way. When that happens, the hotel loses room revenue. So they try to deter people from redeeming points and not showing up with a policy like this.

Also, it deters people from booking rooms with points and then "selling" the reservation to someone for $100. Because if the dude you sold the reservation to doesn't show up, you might be charged the full rack rate instead of the hotel merely taking the points.