I read one of the stories from azcentral - seems in general Allegiant isn't a good choice to fly except for their low prices. Infrequent flights, not enough planes, etc. Now with this "we'll fly the route during peak periods" it confirms they really aren't a big factor.
Additionally, most of the airports they fly to/from aren't where most people travel from. If you fly from CA to Hawaii you fly LAX or SFO - not these podunk airports.
It reminds me of the cheap/independent/Chinese coach bus services that skip going in to the Port Authority Bus Terminal in NYC to save money, and just picking people up on a designated street corner so they're able to charge a low fare. Half of them don't have the proper permits/licenses/insurance either.