The then-CEOs of Delta and American (Mullin and Carty, as I recall) testified before a congressional committee some time in 2002 or 2003. They said that the FAM program is unnecessary and costs their companies hundreds of millions of dollars a year in unsellable premium seating, among other things. Their testimony was quoted here shortly after it happened and should be searchable.
Unfortunately, it went in one ear and out the other! Congress is convinced that the public wants -- even demands! -- FAMs and all the other ineffective security nonsense. Until we -- the public -- let Congress know that we don't support this silliness, it will continue.
Bruce