Gnopps: a fine summary. But I think you are preaching to the converted: we understand it is a scam. The airline of course knows this, but it also knows it can get away with it. So the question has to be, if you are unhappy, what do you do next?
Unfortunately, regulators and many customers are not all that unhappy with the status quo. They recognise that the airline requires a certain level of revenue to survive, keep shareholders happy, etc Their concern is that you get rid of fuel surcharge, and the cash that generates from (for example) award flights, fares elsewhere will simply increase to preserve the same income.