Get rid of FP and standby would drop to a fraction of time it is now, they would lose a tremendous amount of onsite guests.
@Alynw--I was nodding my head in agreement with you until I got to this part. There are so many other advantages to staying onsite at WDW that I don't think getting rid of FP would seriously impact their room occupancy. What are these advantages? DME. Free parking at the parks. Internal WDW transportation: bus, boat, monorail, Skyliner. Ease of getting back to one's resort to take a break. EMHs. Proximity to the parks, although I realize that there are some off-site resorts that are just as close as some of the WDW resorts but they do not have transportation to the parks that's just as frequent as onsite resorts have. Those are just a few examples off the top of my head.
And there are the intangibles, like the so-called bubble, which I'm very fond of. And the theming at many of the resorts, which I'm not alone in my enjoyment and appreciation of this sort of thing.
Now, if they took away DME,
that might have an on the resorts, although charging for parking doesn't seem to have done that, so I could be wrong there.
I use the current FP+ system, but I'm not in love with it and completely agree with you that it's created long standby waits. It's especially noticeable at rides that used to have little to no standby wait times, like SE or IaSW. Maybe Disney likes this--it gives the impression that rides with long standby lines are super popular or so worth it, even if they're not.