I just don't see how the airline can argue that you are not entitled to a refund, even on a non-refundable ticket, when the TSA has drastically changed search procedures between the time you bought the ticket and the day of the flight. Especially when the change involves touching a passenger's sexual areas.

This is a classic bait-and-switch: the terms change after you purchase the ticket. It's not the airlines' fault; it's the TSA's for not giving the public adequate notice. Any change in search procedures should carry at least a one-year advance notice, because airlines sell tickets 364 days in advance.