Hi Todd. I fly Alaska airlines quite a bit so I thought I'd try to shed some light on your situation.
Alaska has two options. Ssme-day confirmed which, for $25, you can confirm a seat on an earlier or later flight within 24 hours of the one you are ticketed for. Then they have free same-day stand-by which is only good on the same calendar day for which you are ticketed and only on flights earlier than your ticketed travel time. So let's say you are ticketed to travel on 2/1 at 3 PM. When you check-in online 1/31 @301PM you would be given the option, for $25, to change to a confirmed seat on any flight to your same destination leaving between 301PM 1/31 and 259PM 2/2. If you want to take advantage of the free same-day standby, you could only do this on flights leaving 2/1 and prior to 3PM.
Your post was a bit confusing:
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Our flights were on both dates, and had originated on same date. Their Alternative Flight Same Day said day of "flights" also. This means they are contractually responsible for providing the seats.
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Could you please post what flight you were ticketed for (date, time and origin/destination) and what flight you were hoping to stand-by for (same information) as this will give me a better idea of what exactly transpired. Also, the airline is only contractualy obligated to transport you on the flight for which you are ticketed. Standby is never a guarantee and even if there are open seats there may be weight and balance issues which may require that those seats go out empty.
Please post the requested details and I'll be able to comment further.
(Moderator - can you please move this to "Check-in/Boarding" as it is clearly not a reservations issue. Thanks.)