I saw the same people getting on the front rails, time after time. It mostly went like this: say there's 12 of them. Two of them legitimately scan in and beg and whine so they can each take three people in with them, instead of just one like the rule says. These 8 go in and spread out all along the front rail. Then the 4 who didn't make the cut go to the back of the floor and sniff out some more wristbands (you can usually find employees very discretely handing out the extras). Then since their friends are holding space at the front, they scoot right in.
I never saw or heard of anyone using a scalped wristband and I never met anyone hwo got in by slipping off a wristband and passing it on. It was people working the system by holding space at the front or getting security people they knew to allow huge groups with one pass.
Did it really bother me? Nah. I went to 9 shows, had GA for 7, got in the ellipse 3 times, and was front and center 2 times. From what I understand about the lottery, that's pretty good odds, so I don't feel "robbed". I felt that each time I was in GA, I understood the lottery and how it was going to work. If I got in, great, if not, oh well. The rail on the outside is not so bad either.
It's annoying that people are constantly working the system and can't just take what they get and enjoy the show for what it is, especially when it's people who are seeing dozens of shows.