Earlier quoted context omitted.
I think the Right Answer is for the airlines to sell two different ticket classes: guaranteed seats, which may not be oversold, and standby seats, which can be. That way everyone knows what they're getting.
Standby seats will just jam up the airport and security. Most shoppers will search for the cheapest flight, the airline will sell it as a bargain with the requisite disclaimers that no one reads, and when 100 standby ticket holders show up to the airport all hell will break lose. Do remember you can't pass security without a confirmed seat. They can't load your luggage without you being confirmed and through security…
That's the practice in the article, passing ticket holders along and telling them the seat will be assigned at the gate, well after baggage is checked and security lines have been waited.
Selling standby seats at the same/similar overbook ratio as they currently do wouldn't lead to any more of a dystopia then we currently have.