I'll get my yearly suggestion in early. I think they should move the entry date to October, change it to first come first served and charge £100 per entry. Would people still be disapointed? Yup. But they are now anyway.
Totally agree that entry should be around £100, it would be infinitely fairer than having the charities pay £500 for each of their places. £100 is a fairer reflection of the value of the place (US marathon entries cost circa $200). Also moving entry to October would allow more people to attempt a GFA time at an autumn marathon.
Totally understand your frustration, I got bounced for the last two years, last 4 for London Marathon and in the inaugural Ride London 100 only last week....but actually got accepted to Royal Parks this year. First come first served is much more preferable, it's almost a sport in itself and does reward commitment and persistence. However people do get shut out that way through no fault of their own, witness the ongoing chaos around the Chicago marathon entry which opened yesterday, the site promptly melted down and they still haven't got it back up...
Fact is running is getting more and more popular and consequently so are the really 'big' races.