Obviously, there is a "point in the evening" at which a reasonable person would conclude the reservation is not honored. The question is when exactly that is.
The point is that while you or anyone else want to apply your own arbitrary "point in the evening", "8pm", etc. there is no verbiage stating how late is too late or low long is too long which brings us back to why the property is doing what they're doing. You could repeat this situation at ten different properties and you would get ten different outcomes because it's all up to interpretation as to how long is too long before compensation, action, URG, etc. should apply. You can think I'm wrong all you want, I could care less. I'm just explaining it to you from the other side of the desk as to why it happens.