If you didn't catch it - the reply is in ...(since posting it over on RS a few people have said they received the exact email which I did think might happen)
""Hi Joe,
We certainly appreciate your support and all feedback we receive regarding the services we offer. We consider all comments and try to take the wishes of the collecting community into account. The 'U' grade from AFA has been a part of the service almost since the beginning and is a driving force behind many who collect modern packaged items, as well as being an identifier used to mark those very rare vintage packaged items pulled directly from cases. Both loose figures and coins naturally qualify for this identifier when they are sent in a sealed package. In the beginning, the 'U' was intended for cut cards, cards missing POPs, and figures in bags, but due to the desires of collectors to find mint condition examples which can be guaranteed original with original accessories and no touch-ups, a few individuals submit nicer condition cards to be opened, which is something we never expected.
Our desire is to accurately grade items, gather data on how many exist in the world, and help make the collecting community a safer place to trade sight unseen. While many here certainly do not agree with opening decent-nice condition cards for loose grading, the decision really doesn't rest with us. The decision to do this rests with the owners of the items who can do whatever they wish whether we agree or not. After all, if we refused to grade certain condition carded figures as loose uncirculated, couldn't the owner simply cut the card or damage it further to qualify?
In the end, many here agree with your sentiments as I've noted, but there isn't much we have the power to do. The 'U' designation is a valuable tool for loose collectors looking for a true 100% guarantee of authenticity beyond what can otherwise be offered, even if it is 99%+++ for standard figures which are not out of packaging (because no matter how good graders are trained, new reproduction accessories are made every year and something is bound to get by).
We do again appreciate the comments and they will be passed on, but I would suggest discouraging fellow collectors from choosing to open nice examples, and encourage them to trade down or look for 'beater cards', 'cut cards', or bagged figures which would be better for the collecting community to be opened than the nice condition ones still around today.
In the end, we support collecting in general and the preservation of these important pieces of history, but we can't control the actions of those who own the items. If it makes you feel any better, it is very rare for decent cards which are undamaged to be submitted for this type of grading.
Please let me know if I can help with any other questions or concerns. I am always available if needed and we certainly appreciate your support. I also prefer nice condition packaged items graded in the package and only lesser/damaged ones opened, but that is my opinion, and some collectors must feel differently"