As I understand it, Group A (current AP holders) can still make reservations for any open day.
At the same time, they are reserving space for those people who will be booking into a Disney resort and intend to go to the parks. It would be very, very disappointing trip to book a stay at the Grand Floridian at rack rates, and then told you can't actually get into a Disney park while staying at a Disney owned hotel on the monorail loop on Disney property. The level of fail there is significantly more than denying a few locals who didn't purchase AP's in the 4 months they have had time to do it.
And yes, unfortunately there are people like
DVC and other frequenters who are caught in the cross-fire. But in this world and this pandemic, you do have to choose your evils.
In the same position, as a leader, if my people told me I had to choose between disappointing some locals who didn't purchase AP's, and disappointing people who travelled here from Europe on a once in a lifetime trip to Disney staying at a Disney hotel, you can bet your last pair of socks I would make the same decision - as would almost every other successful business leader in the world.
And that decision sucks. It sucks for them to make it. It would suck for me to make it and I would hate it to the depths of my soul. But nonetheless, it has to be made and there it is.