The club cannot sell every seat with hospitality. That's impossible. It won't happen. How many fans are going to buy a ticket in SSL1 with hospitality for £250?
The club will find ways around selling more expensive tickets with added on hospitality, but there is only so much of an uptake for those kind of tickets.
Selling a listed ticket on the ticket exchange for £65 instead of £42, 1/19, that the club give me, is a markup by the club. If the club are giving me £42 for my match ticket, the club should sell that match ticket for £42 to another City fan. Yes, the club could add transaction fees to the sale, but the fees have to be resenable.
As others have said the other alternative for the club is to raise match day and season ticket prices again, but do the club want to be seen skirting around the new ticketing laws, and pissing the fans off again, and possibly starting another fan protest about ticket prices?