LONDON NOT UNDERGROUND
Until a year ago i was responsible for pricing at Southern.
This is now just a personal view.
London Not Underground routeings are generally used for season tickets only (although exceptions can, as always, be found)
This arises because cross-London markers (the maltese cross symbol which entitles passengers to travel on the Underground between designated interchange points) cannot be applied to season tickets as there is no agreement with TfL for them to be accepted (the Through Ticketing non-Travelcard Agreement applies to day tickets and inter-available routes only).
The implication is therefore that the intention is that the season ticket should have the same validity as the equivalent day ticket but without the right to use the Underground. Maybe "Any Permitted Not Underground" would be a clearer route description (abbreviated to fit) and would potentially allow non-London routes such as via Shoreditch High Street
If the route involves transfer between London terminals not on the Thameslink route then that is at the customer's expense
To give another example - there is a season ticket between Epsom and Dartford route London not Underground - i'm sure there would never be any question of accepting this ticket for travel at any of the following Victoria, Vauxhall, Waterloo, Waterloo East, Charing Cross, London Bridge, Cannon Street, Blackfriars, City Thameslink.
For a journey such as Gatwick Airport to Hatfield the routes that can be used are any route from origin routeing point to London and any route from London to the destination routeing point.
In this case the routeing points are Alexandra Palace to London and London to Gatwick Airport.
Any of the routes from Alexandra Palace to London can be combined with any of the routes from London to Gatwick Airport.
Alexandra Palace to London allows travel to Old Street, Moorgate or Kings Cross (map KE)
London to Gatwick (map LB) allows travel from St Pancras, City Thameslink, Blackfriars, Waterloo, Victoria and London Bridge.
Interestingly the alternative (map SC) does not show St Pancras so there is no rail only route using KE and SC.
The problem for staff arises from the very complex ticketing on the Brighton line with dedicated and inter-available tickets, tickets to individual termini as well as tickets to London Terminals and tickets routed via London. This derives from the particularly fierce price competition between FCC and Southern. As other commentators have said all this should get tidied up in the new combined franchise but inevitably where there is less competition there will be less keen pricing.