Hey Kunzeworld. Sorry you had a lousy time. My wife and daughter went to the MK on Sunday, 10/17, and also experienced several technical glitches that were frustrating. See my thread about it here:
http://forums.wdwmagic.com/showthread.php?t=46090
But about Fastpass, we really enjoy it and think it's a good idea. I think if it's used properly, you can make the best use of your time in the park. We will basically plan our whole day around it. Since our favorite attractions are SplashM, BTMRR, SpaceM and Philharmagic, we will use FP for only those attractions. Once we arrive at the park, we will usually head to Frontierland and get FPs for one of the mountains. Since it can't be used for about an hour ahead, we will then visit another, less popular attraction such as Tom Sawyer Island. If there's still time left before we can use our FPs, we'll get an ice cream and watch people come down SplashM. It's all in how you plan your day. I would suggest you grab an FP for your favorite ride, then stay off the beaten path until it's time to use it.
Are FPs unfair? Absolutely not! They are first come, first serve. If all the FPs are gone for a particular ride, I don't get ed off. I'll stay in the area, visit another attraction, then come back. Like I said, it's all in the planning. Second, if you are holding a FP for a particular attraction that's good for, say, 12:30 to 1:30, no FP machine in the park will serve you a FP for the same or a different attraction until 1:31. Third, if crowds are light, chances are FP won't be operational. We visited in early September, when most attractions were 10 minutes or less for standby. On that day, all FP dispensers in the MK were covered and chained up. Seems logical. And finally, it has been my experience - at least on our favorite rides - that while the FP line does indeed move quickly, there is usually a pause at the head of the line as the FP and standby lines merge into one - kind of like merging into one lane in a highway construction zone. I've never seen a continual stream of FP holders allowed all the way through while the standbyers are made to stop and watch with sad faces. There has always been a merge system. But like I said, that has been my experience. Now, in the case of BTMRR, which has two sides, one side was for FP holders, and the other for standby. That's how it was operating when we visited on 10/17. The FP side was moving along very quickly, as you can imagine. And on that day, standby was about 45 minutes, which means the enormous cue area was almost full. So as a FP holder for BTMRR, yes, you may feel a little funny walking unobstructed to the head of the line while all the folks in standby are wondering how on earth you got so lucky.
So that's my take on the FP system. I agree, it is abuse to use it for an attraction with a 10 minute standby. I'll wait that long in the Publix Deli, so no biggie. But if you plan your day around it and use it for only your favorite rides, I guarantee you will have a very enjoyable day at any of the parks. As for technical glitches and peeling wallpaper, well, I'd still give my hard-earned money over to The Mouse, because if I've already accepted that not everything is going to be perfect (and nothing is), chances are I won't be disappointed. Oh, and if it's a day-trip, I also accept that I may miss one or two of my favorite rides.