If the objective was grace, this was a spectacularly bad design. We institutionalised politeness, bureaucratised kindness, and then acted surprised when it collapsed into entitlement on one side and resentment on the other.
Abolish the fiction. Remove the “reserved” label. Remind people to be humane, not obedient. Let seats be given, not demanded; received with gratitude, not expectation. That way, courtesy regains its moral value, and public transport stops doubling as a low-budget ethics examination.