Yes, you are missing the point. If I am going to spend $20 either way, wouldn't it be better if I could choose how exactly I want to use it? Maybe I'd like to ride Space Mountain 4 times. My point is that at the price point WITH the restrictions, it holds no appeal to me. If there was a system that let you pay per ride and use however you want, as long as there is capacity in the LL, that would be FAR more appealing. And I'd be more apt to throw $5 out here and there to access a LL when the Standby line is too long and I'm feeling impatient. Right now, Disney is getting $0 from me for access to LL. And they will keep getting $0 under this current system. If they decided to open the LL up to pay per use, they would ABSOLUTELY get some $$$ from us.
Here's some math from economics 101:
Person A would pay $16 to skip the line for Space Mountain and $4 to skip the line for Indiana Jones. Person B would pay $16 to skip the line for Indiana Jones and $4 to skip the line for Space Mountain. Both people only care to ride Space Mountain and Indiana Jones each once per day. If sold separately, Disney would have to price both rides at $4 to get both people to buy both rides and make $16 but if they sold a Space Mountain + Indiana Jones bundle, both people would be willing to pay $20 for the bundle and Disney could make $40.
Now let's add person C who would pay $4 to skip the line for Space Mountain and wants to do Space Mountain twice but doesn't care about Indiana Jones. If Disney sold the rides separately at $4 as well as the bundle, only person B would buy the bundle at $20. Peron A would not buy the bundle because if Space Mountain only costs $4, they'd only be willing to pay up to $8 for a bundle. This means that in order to sell to person C, Disney would make only $20 by selling one bundle to person B and $12 from the three Space Mountain Fastpasses bought by A and C for $32 total. So Disney would not offer Space Mountain separately even though person C would be willing to pay for it. In this scenario, Disney thinks you're like person C.
Of course, we can tweak the numbers to make a different outcome. If person C was willing to pay $16 to skip Space Mountain, Disney could sell all the rides for $16 each. Then person A and person C would buy Space Mountain and person B would buy Indiana Jones for a total of four Fastpasses at $64.
In the scenario where person C values skipping the line for Space Mountain at $4, even changing the bundle to allow re-rides would not entice them because they wouldn't pay more than $8 to skip the line. But if person C valued Space Mountain at $10, Disney could offer a bundle that allowed re-rides and sell three bundles for a total of $60.
Of course, with thousands of guests and dozens of rides, the math is more complicated and Disney doesn't have perfect information on how much guests would be willing to pay to skip the line so precise math isn't even possible. It's definitely possible that the situation that makes the most money is one where the majority of guests think
Genie+ is lousy value but a small subset pay for it. The dangerous thing about this is that if people see one thing offered by a company as overpriced and not worth buying, they're more likely to perceive other things by the company as overpriced and not worth buying. It's generally not a good idea to convince your most loyal customers that your products are not worth buying because if you do that long enough, many are going to decide not to be your customers anymore.