I am not 100% against the idea of a lottery, not just this kind of lottery. I understand the band's goal of not wanting the same faces every night and giving everyone a chance, but this system equally rewards people who actually show up at 8pm than those who show up at 6am.
I think if they REALLY want to do a lottery (and I still personally prefer first-come first-serve), they should do a 'regular' lottery, where wristbands/numbers are given out in the morning in either a limited amount or until a certain time in the afternoon. Then at about 4 or 5pm ONE number is picked up, and it becomes the first number, then everyone lines up in order behind.
This system has the following advantages (compared to the current one):
1. Groups are not split-up. If ever the number picked up splits a group of less than 4 people, security can just let them go together.
2. It wil prevent crazy lining up (like the night before), because it will make no difference if you are there at 6am or 2pm in terms of your spot in line. (which the current system does not)
3. People can choose whether they want to go into the ellipse or not.
4. If the numbers are limited (in amount or in time), they will still mostly go to relatively dedicated fans. You don't have to show up too early in the morning, but people who don't really care and got tickets because of connections (and that is a LOT of people, believe me, including in GA) and only show up during the opening act will not end up in the ellipse instead of fans.
5. It gives a better chance to more people to get up close, and the band will not see the same faces every night.
As for U2.com member preferences, I'm not sure there is any fair way to deal with that, so I would just screw the idea.