I see there are many Continental apologists here... so no need for CO Insider to respond to this insanity unless he wants to correct the situation.
Yes, airlines CAN legally do it (pull a fast one by giving two completely different flights the same number). So it started in 1934 or whenever... I wasn't born yesterday... I remember actual direct flights (where you sat on the plane while new passengers boarded in the stopover city). But this AMS-IAH-LAX thing was a situation where I did not just get off the plane and walk over to the next gate. I had to transfer to a different terminal, go through security again, wait to be boarded again as if I was getting on a new flight. Is it fair that I went through all this extra work and five extra hours of flight/ground time for nothing? I've already given my answer.... Next time, I fly KLM nonstop for the same amount of miles and a hell of a lot less hassle.