Ya.... Okay.....
16 hours a day, at least 4000 people in the land at a time (land is bigger than DL supposedly right?), 4 hours in the land on average, 16,000 people daily
Sorry but you are not going to have 16,000 people lining up at 1am every day for weeks. Especially when those 16,000 people would be onsite guests of which if WDW completely sells out (right now its far from that it seems based on resort/room availability) its 30,000 rooms with 3 people per room (on the high side) equaling 90,000 resort guests with an average stay of 4 days and 1 park each day leaving 22,500 resort guests looking at going to HS daily.
I am not over simplifying anything you are just trying to purposely make it more complicated than it needs to be. Anyone who would be willing to show up at 1AM daily for weeks would be in California this summer going to basically the exact same land.
Lots of locals will want to show up but a reservation system would not account for them anyways because it would have to go to resort guests anyhow. The resort guests get the 3 hours in the morning to get in to the land or hit the virtual line before the normal public even has a chance. Locals are getting their crack at the land with the limited previews they are going to do.