Whether or not the admissions process actually is capacity constrained and has replacement effects, most people will assume it does because:
The vast majority of other admissions processes are capacity-constrained.
Past and current messaging says so.
Here is a quote from the admissions FAQ https://www.eaglobal.org/admissions/:
"The most common reason for rejecting someone is that we have limited space and think other applicants would get more out of the conference. We don’t have any particular concerns about applicants we reject for this reason, but simply need to save the space for attendees who might be a better fit for the event."