In the context of a crossword puzzle, the clue "SHAME" meaning "PITY" can indeed feel appropriate because of the way language is often used flexibly in everyday speech. When people say "What a shame" or "What a pity," they might be expressing a similar sentiment of regret or sadness about a situation, without necessarily implying personal fault or embarrassment (which is often associated with the word "shame") or compassion for misfortune (commonly linked with "pity").
Crossword clues often play on such flexible or alternate meanings of words, relying on the solver to consider the different ways words can be used or interpreted in various contexts. This flexibility is a key aspect of language and wordplay, making crosswords both challenging and enjoyable. It highlights how words can have overlapping meanings, even if they are not exact synonyms.