I can see where you are coming from, but I can also see why someone holding a ticket marked "booked train only" and a reservation showing the time of a specific train would be reluctant to catch a different train.
Agreed, it's very confusing because the T&Cs say one thing, the internal rail industry documents another, and the coupons you actually get say something else too.
But this sort of confusion is typical of the rail industry, because there is no effective Regulator, and no proper ombudsman, so the TOCs do what they want (with some apparent regulation functions carried out by ATOC) sometimes without any thought about the consequences on other TOCs products.
However when delays occur I would always advise seeking the advice of staff, and if staff advised that a clearly appropriate connecting train could not be used and therefore incurred an unnecessary liability, I'd be interested to hear about it, and no doubt the TOC management would too.
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You're cherry-picking the rules that suit. Valid on booked trains only is also a rule.
But it could be argued that if you pick that rule over the T&Cs, that's also cherry-picking?
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Let's step back a moment and consider why is that the 1306 now issues a "Coach * Seat **" coupon for a Watford Jn to Manchester journey.
Did London Midland do this because they want Watford Jn to Manchester passengers, or indeed any passenger who is simply travelling Watford Jn to Milton Keynes Central, to be tied to a specific train?
No.
It's because they sell their own Advance fares for journeys such as Watford to Crewe etc, for which they are
not the "connecting" TOC.
The issuing of a coupon between Watford Jn and MKC is an unfortunate by-product of the fact they now issue their own Advance fares, and the
inability of the ticket issuing systems used by the rail industry to differentiate the "connecting" service.
I don't think that unfortunate, and almost certainly unplanned, by-product the introduction of LM's own fares is deliberate nor affects the material terms & conditions of the ticket, which were never in any doubt until LM changed to use the 'counted place' system.