It's the massive reservation system that makes it more of a problem, imho.
Even while reaping the fruits of the massive reservation system I agree that it just plain shouldn't be necessary. I am offering a service to foreign tourists who wouldn't stand the chance of a snowball in hell of getting into a tent after traveling halfway across the world. The Oktoberfest used to be, as DDBug describes it, a downhome festival for the locals and a festive end to the summer's work for the farmers. Gabi Weißhäupl, head of the Munich tourism office, has hyped it up so much with worldwide publicity that it has lost its local flair and appeal and has turned into a madhouse carnival with Status Quo, John Denver and a Prosit every seven minutes to increase beer consumption.
If you go early enough in the day on a weekday you can still experience the relaxed atmosphere, the unhassled waitresses, the traditional brass band music and the familiarity and friendliness of strangers at your table or the one next door. And you don't need a reservation.
P.S. I just saw what another company charges for a table at the Augustiner in the evening: €1,195 for a table of 10 including a €25 voucher per person. I gotta recalculate my fees for sure ... I mean seriously, that is obscene.