So in a nutshell, many of these people could essentially pay another 75.00 for a confirmed seat, but choose flexiblity over confirmed.
This is correct. I ticketed a Flexi the other day TPA-ANC and it was $460. I thought that was quite a bit for standby so I checked the same flights they ticketed for and it came out to $580 or so for confirmed. I asked them if they wanted to pay a little more to be confirmed and they said no. They didnt know exactly when they were going to be traveling and had just picked dates around when they were planning to fly, but might have to go earlier (they would have to buy a ticket then), so they did the Flexi.
In many of the markets with the current Buddy Pass system we have, you can get a confirmed seat for just a little over standby. I almost always check this out when someone is buying a Buddy Pass just so they know the alternatives, especially if its during a busy time or for an important event.