First, I'd like to see more than "I read somewhere someone implying they heard something" to substantiate this. US isn't the sharpest tool in the shed, IMHO, but this strains credulity.
Second, while I have upgraded military personnel as companions and would give up my seat, there are reasons we have rules and guidelines, and a FF should have the right to a seat before a non-status flier. We certainly reserve the right to express our disagreement with their decision making, and would hope that many fliers would make what I consider the right decision. But I do have to say that ignoring program rules and making executive decisions on board isn't a good idea. Just think about how FT'ers freak out when a company doesn't follow the program rules when the benefit us.
If someone can provide a link that verifies the story, an email storm raining on Tempe sounds like a good idea. Media included.