It is that simple, for the tickets distributed to supporters via loyalty points. I disagree that people can't catch up, I was at or around the top a few years ago, but as has been mentioned already, circumstances change, priorities change. I've missed a few over the last three/four years and if someone catches up/overtakes me, good on them.
I don't have a problem with the ticket collection on the basis of points going to people attending, no one else. I agree it's a pain in the arse to collect the tickets, I've got flights booked for Barcelona, but as my flight lands at 17:40 I'm dithering on buying a ticket through the club, or get one in their end because I'm not sure I will have time to get from the airport to the ground via a ticket collection queue.
Loyalty points aren't the problem - people who think they are forget that those on the top points are those who where at Maine Road every other Saturday morning at 3 to 5am queuing for away tickets in the old second / third division. Every other week. And have been going since. I still see/say hello to people who's name I don't know, but spent hours queuing with, week after week, for years as we produced "XX" number of away stubs from last season (most of which you would only have got at the time having produced "XX" number of stubs from the season before). The day they introduced points, everyone in that queue got their Saturday mornings back - more than once I drove home with tickets, fell asleep in the car on the drive at home, woke up and drove back to Maine Road for the match. I've dropped off, as others have/inevitably will, but whilst they are still doing every game, why shouldn't they get priority?
The problem isn't just those with points passing them on (although the way the away European games have opened up recently it is a problem) it's the what seems to be an ever increasing % of the allocation going elsewhere which just raises the debate on the distribution method we know the most about - ie what is available to normal supporters.