For many events, the demographics lean toward age groups where people have jobs with work schedules that aren't known more than a few weeks in advance. The initially planned friend group (e.g., four people) can have little overlap with who is actually free on the event date and actually attends. Also, if the event has assigned seating, people buying their own tickets typically has the adverse outcome that you can't sit together.
The rebuttal is: works fine on airplanes (minus abusive change fees for economy seats)