To liken this back to the old days - the difference in time between flashing a valid transfer slip (of paper) and having to drop change into the automated till.
Elderly will have to do that, too, because a) I expect they still want to track usage, and b) allowing some passengers to hop on a bus without checking in makes it too easy for those ineligible to do that (e.g. elderly who do not live in London) to try and do that, too.
Unfortunately the bus passes and freedom passes are not interchangeable and sometimes have to be manually checked if not in the local region,
Another counterpoint: if the bus isn't overloaded, taking an additional passenger costs next to nothing, while delivering significant value to the passenger. Don't we want to create as much value as possible?
The bus has to stop, let the passenger on, and later let them off.
This affects everyone else on the bus and reduces the quality of service.
You can see that a long-distance train has doors only at the end of carriages, and stops for several minutes, but a subway has doors about every 10 seats, and stops for 20 seconds.
Instead of TfL being forced to take the loss, they are reimbursed by local government cost of the transport.
As an aside, I also take some issue with this pass being completely free to use. In my experience, people end up using it to go a single stop just because it's free, so why not -- which slows bus service for everyone else. I think it should be 20p per journey or something like that.