Yes, hotel guests still get FOTL.
I personally would be thrilled if express pass and fast pass at Disney were discontinued. Believe it or not it makes the wait time longer for everyone. When you hold an express pass, it is like you are in line for 3-4 rides at a time. You get the express, then ride 2 or 3 more rides, taking up space in those lines and then go use your express pass and take up a space in another ride. Whereas if no one had express, while you are in line at one ride, you are not taking space in another line. Essesntially, the lines will be shorter for everyone.
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I agree 100%! Once they all came out with Fastpass/Express-pass the regular line waits became extremly long! I was working for Disney when they started Fastpass. They didn't do it to
help the guest, they did it so the guest didn't have to spend as much time online but instead they could go elsewhere in the parks to spend money. The longer the lines, the less likely guests will shop. As far as Universal, I can't say why they started the free one, but we all know why they started the the
fee 
one, more money for Universal.
You can do parks without fastpass/express-pass. As you have said, early in the morning you can hit nearly every major attraction in one of the parks. That is how we do it. It is just harder to do more than one park in one day.I would never pay for express-pass. Universal gets enough money out of me, why do I have to pay to
get on the ride
also to the OP... I agree with you, 30 minutes is a wait. No, it may not be the 100 minute wait that some guests have experienced, but it is still what I call a long wait. What is even worse is when you pay to stay onsite & the wait with your room key is over 30 minutes. I have had that happen to me the week of Christmas in the middle of the afternoon

Yes it may have been shorter than the regular line, but not short enough for me. To me a short wait is 5 minutes, a wiat I can deal with is maybe 20, but 30 is long to stand for a 90 second ride

... yes it is shorter than the 100 minute wait like I said, but it is still a bit of a wait.