I do think the little "wicks" in the grooves make this work much better.
The "reservoir" is only the water held in the flannel, plus water in the grooves of the tray. When there are wicks in some of the grooves, the flannel can "get at" the water in the grooves.
I wish I could thnik of something from Goodwill that would lift the flannel and the pots or inserts UP an inch or so. Then the whole 1020 tray could be a reservoir (if the flannel dangled down into it).