I would by no means consider myself sub elite, but I'm fast enough to have snagged a guaranteed entry at several races, including NYC this year. I'm also an RD for a couple of small, local thons and halfs, where we comp top finishers future entry fees regardless of time.
From talking with other RD's and staff at some at larger races, it's a nod to those who don't have elite or sub elite talent, but who are willing to put in the miles and hard work it takes to hit those times. Sure, there are those who can hit those times with little effort, but I think there are far more "hard working above average Joes" who take advantage of this than there are lazy elites or sub elites who can hit the time no problem so they can fun run a race.