It's not standard practice (as stated). DL also deigns to allow puny Silvers/Golds most exit rows at booking (for now). Premier Gold gets E+ at booking and AA Platinum gets MCE at booking (unlike Atmos Gold where you either pay or wait for the upgrade).

So yes, this is in fact a takeaway from actual elites who fly actual planes with actual Chester on the tail. Which is why I have actively booked business away, after the third or fourth time you get told "thanks for your loyalty, here's some stuff we are taking away from your elite status, fly us more or spend more on the credit card, loser" you get the hint that "loyalty" is a con job if the airline can monetize what used to be something given for "loyalty", so two can play that game.