I fear this may have become the new norm. You could always send packets into APRSWXNET, and so long as the packets were reasonably valid, findu would display and archive the records. The data was, and maybe still is, gated to MADIS using a single text control file (APRSWXNETStation.txt). That file contained the same basic metadata as the CWOP user lists plus a few extra columns. It was read once a week, on Tuesdays if I remember correctly, and controlled what station IDs would be included in the files that were shipped over to MAIDS. The content of the file was manually maintained by humans and you had to request that you be added when you were ready to send data or if you'd been removed after a long hiatus.
I don't know what process the people behind the scenes used to manage the growing list of station IDs, but I do know there have been some changes in the more than 20 years since inception. I'm not aware of a database ever being a part of the mix, but if there is one now then the rules may have changed a little as a result.
It seems kind of odd though, it's not like the IDs can be reused. There is around 15,000 active ID's out of 50,000, and while a lot of 9,999 in the G block may not have been assigned yet, a lot of the 40,000 in the C, D, E and F blocks have been abandoned or were never used. It dosen't make a lot of sense to burn through the available IDs faster by forcing someone to get a new ID rather than going back to an older ID that is permanently reserved whether someone is using it or not. So yea, I'm scratching my head on this one.