It does work at 7mo for reservations at your non-home resort, especially if you have no flexibility in dates or room size. In these cases, to alleviate the risk of a home resort owner booking, you would have to call daily to change the reservation until you have the days you want.
Is this good practice? No. However, since Disney doesn't disallow it, people will continue doing it.
While we've done this in the past, I probably wouldn't ever do it unless I was trying to book AKV club level (@ 11 months - not something that's currently in my plans) or a grand villa at a non-home resort again (probably not ever again). It's annoying to have to go through the time and effort. Since we've never had a problem getting a room that worked for us (we've even managed to get an awesome studio for 8 nights in July at GCV at 7 months without having to walk), it just doesn't make sense. However, for those must-have reservations, it can be a useful tactic.