Okay, I'll admit I am not 100% clear on the privilege, but I had thought that the priority thing meant "priority in login queue", not "we reserve the right to kick off Free Account people who are already logged in to make way for the Chosen VIPs".
I am a VIP myself, and even I don't think it would be a good idea for the latter practice to exist.
Don't really want to touch this argument, but it did bring me to this question, on the exact status of this "priority" privilege.
(I should probably change this to a real sig now, but I'm busy playing LotRO.)