BA look after Exec Club members with status

My parents have just been denied boarding from a BA flight to Canada in Club as all the seats in the cabin had been pre-allocated to Exec Club gold or silver members. BA seem to block OLCI in these circumstances, as they tried to do OLCI 24hrs before departure yesterday, but it would not work. Phoned the BA helpline, only to be told all the seats were allocated to EC members with status. The flight was overbooked & the 4 pax with no [or Blue] Exec Club status had to wait until check-in closed to see if any of the gold or silver pax who the seats were being held for did not show up - they all did.
This got me thinking, had this been VS in UC... A Red FC member can book an UC ticket and even on a Z fare, they can select the seat they would like on the aircraft (as long as the 60% of seats available for pre-allocation has not been reached) at the time of booking. When OLCI opens, anyone, irrespective of FC status can check-in online & bag the seats they want (exit / bulkhead rows excepted). They then have a boarding pass, so stand a good chance of getting on the flight.
I cannot decide which airline is 'right' here - BA are clearly rewarding their frequent flyers by allowing them to pre-select and then holding their selected seats until check-in closes. I am sure that Virgin only offer to guarantee a FC AU or AG member an Economy seat on a flight if it's fully booked - and then you have to be booked on a full fare ticket. On the flip side, Virgin are generous in allowing anyone to pre-select their seat on the aircraft & then bag other seats when OLCI opens. Would people lose their pre-selected seats on VS if one of the 'top 50' FC AU members wanted a seat on the flight?
As it happens, my parents did not have any plans as such for tomorrow in Canada, so they are in the Heathrow Hilton with free dinner, B&B + 400 of BA's cash.
As a slideline, apparently more than a few of the BA ground staff indicated that this happens far from infrequently.
James
This got me thinking, had this been VS in UC... A Red FC member can book an UC ticket and even on a Z fare, they can select the seat they would like on the aircraft (as long as the 60% of seats available for pre-allocation has not been reached) at the time of booking. When OLCI opens, anyone, irrespective of FC status can check-in online & bag the seats they want (exit / bulkhead rows excepted). They then have a boarding pass, so stand a good chance of getting on the flight.
I cannot decide which airline is 'right' here - BA are clearly rewarding their frequent flyers by allowing them to pre-select and then holding their selected seats until check-in closes. I am sure that Virgin only offer to guarantee a FC AU or AG member an Economy seat on a flight if it's fully booked - and then you have to be booked on a full fare ticket. On the flip side, Virgin are generous in allowing anyone to pre-select their seat on the aircraft & then bag other seats when OLCI opens. Would people lose their pre-selected seats on VS if one of the 'top 50' FC AU members wanted a seat on the flight?
As it happens, my parents did not have any plans as such for tomorrow in Canada, so they are in the Heathrow Hilton with free dinner, B&B + 400 of BA's cash.
As a slideline, apparently more than a few of the BA ground staff indicated that this happens far from infrequently.
James