Some cities in California attempted to ban surcharges, but the federal government sided with the banks and the cities lost the case (Bank of America v. City and County of San Francisco, in the 9th Circuit Court of Appeals).
Washington Mutual was the last major bank that had surcharge-free ATMs. They also had free checking and lower fees on many other things. Needless to say it didn't work out so well for them.
Why would anyone offer a surcharge-free ATM? Most people can avoid surcharges by staying in network or getting reimbursements, and those that can't will pay the surcharge if they really need money. Having an ATM without surcharges is just leaving money on the table.