Now that we know this type of contract model works, and if people are bothered by the unexpected windfall, future contracts can be structured differently to taper off or something.
https://www.recreation.gov/permits/4251909
Application Fee: A non-refundable $9.00 lottery fee is required for each lottery application.
I went to the lottery a few times in Kanab and never got a permit. I've resigned myself to the fact that I'll probably never get one now.
I'm pretty sympathetic to the argument that these drawings should be extremely inexpensive ($1?) and there should be some transparancy where the fee goes.
Also not mentioned in the article - I'm most familiar with how Yosemite and the parks in the sierras do it, but in those parks for popular trails there's a 6-month-in-advance lottery system, but there's also something like 10% of the quota reserved for 1-day-in-advance walk-up tickets only. So you either have to win a lottery that favors the preppy planners, OR be willing to wake up in the middle of the night and stand outside a park office for a few hours until they open. Not perfect, but it gives some options.