> It is a pathetic, deplorable strategy based on pure greed
No. The number of pax that show up is somewhat random, the number of seats on the plane is somewhat random (weight and balance, broken oxygen mask or seatbelt, higher priority pax such as crew that need to be ferried to a flight that could not otherwise go, etc.)
To always plan such that the highest possible number of pax is smaller or equal to the lowest possible number of seats available is wasteful.
Why don't people understand that an airline operates under different constraints than a bus company or a train operator? In a plane, you can't just have a few more people sit in the aisle.
Now, like any stochastic problem, you assign weights to both suboptimal outcomes (empty seats, bumped pax), and optimise, which leads to modest overbooking. Now, most of the time everyone gets along (and more people than without modest overbooking), and sometimes some people are denied boarding. Some people need to be at a certain place at a certain time, and some people don't care if they're a day or two late. So you ask for volunteers and compensate.
It's not only perfectly rational, but also perfectly moral.
Why don't you get upset that people ever have to wait for surgery? Why don't we double the number of doctors and hospitals, so that always anytime someone needs surgery they can immediately get it? Well, because it's prohibitively expensive, and it's much more efficient to keep the facilities utilised as fully as possible, and shift around the demand (patients) a bit. Is that a deplorable strategy based on pure greed? No, it's a sensible optimisation to utilise scarce resources as well as we can.
Talking of greed, do you know how to make a small fortune in aviation? Easy, start with a big fortune.
Of course, regulation could make bumping pax even more expensive and thus change the calculation. That would probably lead to higher ticket prices and more (but emptier) planes in the air. Is that preferable to the current "pathetic, deplorable strategy based on pure greed"?
EDIT to add: This is assuming decent communication, and decent compensation for bumped pax (as is the case in Europe). I'm not really familiar with the situation in Northern America, if they just bump pax without compensation and/or lie to them, that's clearly not good, either.