Southwest does not allow stand-by. If you want to fly on an earlier flight they will charge the difference up to their "Anytime" or walk-up fare. Cancelling the ticket and paying full fare would only have resulted in him paying more since they were applying what was already paid to the "Anytime" fare and charged the difference.
This is nothing new for Southwest and it's stated in their Contract of Carriage and a very well known policy for regular Southwest travelers. Some "luv" it and some hate it but there's no "bait and switch" here.
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