Rssrsvp,
Your restaurant analogy is perfect! The fact that nobody is using the table at 7 p.m. is not the responsibility of the person who reserved for 8 p.m. And if that person agrees to take the empty table at 7 p.m., the restaurant can't lose. The 8 p.m. revenue is shifted to 7 p.m. And the restuarant might be able to take an extra customer at 8 p.m., so they might actually come out ahead.
Delta's explanation that they lose money by letting customers fly standby early just doesn't hold up. How can this be true?
Bruce