This makes my head swim too. I booked a few stays almost a year out and as each got down to a week out, the points were deducted and a certificate issued.
However, I made a 1 night Cat 7 reservation for a month from now in NYC (no mention of advance cancellation policy) and the 35,000 points were deducted IMMEDIATELY. Is this new? No real impact but I guess it prevents folks from going reservations crazy if they don't have the points.
Reminds me of the scam most banks are playing now with regards to "Free" online banking. You need to schedule a payment 5 business days in advance, the money is deducted immediately and it might be 10 days to 2 weeks before that payment might normally clear w/o online payment. Nothing is "Free"!