I think all parties on Munro are doing the right thing.
If you drop out of the 20 central contracts, if 21st player, that is a tough spot if at point of career & family life Munro was at. So, yes, understandable you'd take the 'certainty' and flexibility of T20 freelancing. We, as fans, under-estimate the amount of away from home work there is in going to play in Dunedin or Napier etc for a 4 day match, not really compatible if you also want to spend some away from home months in the winter in the T20- leagues and have a young family.
I also find it understandable that NZC are likely not going to select you if you opt for this path. NZC are flexible with the T20 tournament that fit in outside of our season. IPLO, CPL, Blast/Hundred. So, there is plenty of scope to earn bigger dosh from outside of the domestic contracts, while also remaining within the domestic contracts system.
Once you get to a point of stretching the depth to pick 32 players for these 4 squads over a 2 month period, it's understandable that NZC would look outside their unofficial homebased selection policy, and look at Munro.
It's understandable if Munro has already been away in PSL, Blast, Hundred that he doesn't want to do Bangladesh and Pakistan tours. Especially if the WT20 squad is already finalised.
It's only really become an issue as it has meant Munro has been shuffled out maybe 18 months earlier than ideal from an NZ T20 POV, and he has maintained his performances while Guptill hasn't really. It's not a situation so profound it would break the 'system'. I mean - they've also left out Allen from the main squad who is the other contender for the position so depth isn't threadbare.
Sheesh, So many 'understandables' I should be a counsellor or a diplomat.