Doesn't matter if reason is legit or just silly the fees still applies.
There is someone out there that lost out because they believed the site was being used
This is a good point - before RA, getting a reservation for that night was a bit "hit or miss". Many times, the SP would tell me "they are full but come any way because people cancel at the last minute".
Sure enough we arrive late and half the SP would be empty as people did not bother showing up (no cancellation fee). So RA's cancellation policy has improved the situation.