I think the point was more: the algorithm makes no sense.
For cash fares, you can argue the pricing is correct because UA wants to take advantage of poorly-written corporate travel policies (e.g., no J, even if Y is more). But for miles/reward bookings, that doesn’t really apply. It’s just bad programming.
It makes sense to UA. That's really all that matters.
And they're certainly aware of the anomaly. If they felt it was in their interest to offer discount (Saver) PE awards, they would.