FTLs were devised many years ago before the phenomenon of LoCo's. They were intended to allow airlines to operate pilots to a limit greater than that deemed to be the ideal, in times of shortages, unexpected happenings etc. In other words to allow for short term flexibility. The limts were NOT intended to be the norm. However, they are treated as such by the FR's of this world, hence the problem.
And yep, the authority is question IS spineless. Remember its the IAA, not the CAA.