[ChineseGP] how 'blocked' can help us

[HiroHOTTA]

(During 4 hours struggle with the letters without significant 
 output ...)

A question has come to my mind and won't disappear...

What are the future of "allocatable labels"?

Let's assume the case where 
  registrant-X applied for label-A, 
  and label-B is marked as 'allocatable' by LGR, 
  then, label-A is delegated to registrant-X.

As far as I understand, the above means "only registrant-X has 
the right to apply for label-B in the future." If registrant-X 
wants label-B to be delegated, he/she needs to make a separate 
application to ICANN. And ICANN will evaluate the label-B by a 
human panel (maybe supported by some automatic mechanism).

Then, what's the difference between 
(1) all variants are allocatable
(2) some variants are allocatable and the others are blocked 
    (or invalid)

I understand (2) can make the applicant know that the application 
for some strings (that are blocked/invalid) will definitely be 
rejected in any case. However, this does not reduce the number of 
TLD delegations significantly because the applicant does want only 
a few variant TLDs in reality, for money-wise reason or usage-wise
reason. 

then,,,,, why is (1) so evil?

Hiro