Years ago, before
MDE existed & shortly after online check in was created they had several options to choose from for location requests & some of the options offered didn’t apply to the resort they were listed for - the one I still chuckle about was ‘near Paddock’ which was an option at several non SSR resorts

.
Agreed, one of the few things we are contractually guaranteed is first come first serve, allowing a cash or status based location upgrade or priority in location requests seems somewhat contrary to that.
We have different takes on this.
We do one long visit each year which we book at 11 months using home resort points & make our very general location requests. Because I fly in from the west coast I never arrive ‘early.’ AFAIK villas are assigned 8 days before arrival & presumably at that point room assigners factor in location requests for every guest checking in that day, why should my location request be ignored & ‘my’ preassigned villa be given to someone just because they showed up hours before check in & my preassigned villa happened to be one of the first villas housekeeping cleaned that day?
I’ve always thought Disney was too generous in allowing early check ins, I’ve stayed in many hotels that don’t allow check in before check in time. IMO it puts extra pressure on housekeeping & housekeeping is one of the biggest expenses our MFs cover.
I realize it’ll never happen, but
I’d love if they let you select your villa when you made your reservation - that way the folks reserving their home resort at 11 months - the resort they pay the MFs to maintain - would have priority in selecting the location of their villa. They could limit location choice to home resort window bookings & still preserve flexibility by the ability to shuffle non home resort bookings.