I agree that I don't see the problem. I actually don't see any difference with this and any other status benefit. Others have to line up whilst I walk past them to the front of the queue. Others stand watching me pick up my bags from the carousel first. Others sit wistfully outside the lounge entrance whilst I just waltz past. Hang, what about QF and reward bookings ... even as a WP I get trumped by WP1. NB's have little to no chance.
I can't see the point of offering status benefits if one is shamed into not using them or worse still, denied the benefit because a once in a lifetime flyer feels aggrieved because he/she has the inconsolable indignity of a middle seat allocation that they, for some God unknown reason, think a regular status flyer should have taken so they can have an aisle or window. I'm sorry, but I cannot see the issue, or the problem.