Yes, it is just a lotto, but the randomness of it avoids the overnight camping out and hours and hours waiting.
And as I understand the type lotto you're talking about, you have to allot time for the people to pay for their tickets. With free tickets, that's one less step you have to take. The last time I was involved in a lotto the way I described it, they handed out 350 tickets (well, pairs of tickets, so 700 people) in about an hour. It requires a fair amount of staffing, I'll admit, but it worked seamlessly. One person to announce the number, and then five or six people to hand out the actual tickets. They called your raffle number, and said which station (numbered 1-6, or however many people you had available) you should proceed to, then handed the ticket to the person at that station. And then drew the next ticket. And so on. When (if) your number was called, you went to that station, they matched the ticket numbers and then handed you an envelope with your two tickets in it. There was a fair amount of venue security to keep people moving (and all the staffing in this case was volunteer).
The truth of the matter is, there's no one foolproof way to go about it. No matter what you do, how you structure it, people are going to complain about the outcome. And since waiting on line in the park is part of the experience, I don't think they're likely to change the system any time soon. Kind of a version of "if it ain't broke, don't fix it".
Sarcasm is an allergic reaction to stupid people.