Sounds more like the Flexcoin guys just want to monopolize the transaction system so that they get a % of the BTCs in their system even though they are basically providing nothing useful. Online wallets are pointless. If you can't run the client on your computer you need to wake up and get your head out of the sand - Flexcoin, Mybitcoin, Instawallet, etc ----> they're all here to siphon *just a bit* of the creme off top.
If you don't want to use any service that charges a fee like tradehill, mtgox, flexcoin, campbx or any other bitcoin service then no one is forcing you to.... regardless you had a valid point regarding the balance displayed and that's being addressed.