I don't doubt the fake wristbands, however I don't think that a hotel was passing out several different color bands and telling guests to watch what color other people were wearing and then put on that color. Well, I'll say I can't see a respectable hotel doing that, not one with any sort of capacity to really make a dent in the amount of people at a EMH.

And, not that I condone that at all, BUT really, if a few people do sneak through the system, disney isn't taking a loss on it. they won't add significantly to any wait times, and if anything they willsell a few more churros, etc. I do see that if you give people an inch, they take a mile, and maybe (doubtful) that factored into the decision at some point, but not to any significant amount.

Wristbands for some 20,000 people on a daily basis along with the 12-15 people they usually had manning the wristband stations was top on the list of reasons.

The issue is really the additional inconvenience placed on guests. Less value per vacation dollar.