I reckon its up to each individual hotel to set a cancellation policy that ensures maximum revenue, that's the American Way.
But I would appreciate it if a "non standard" 6pm Day of Arrival policy was predominately displayed and flashing some how to bring it to your explicit attention. More often that not, its buried under the "rate rules" and it doesn't appear in the Outlook appointment.
Its there, you just have to check carefully. I was burned once but not twice!