It's not just "cheap hams" Oregon DEQ around Portland is using these to route driver's into lanes for emissions tests
People, businesses and agencies included, are tired of paying Motorola prices, plain and simple. What hasn't really been mentioned in this thread, is that there is also a huge influx of businesses resorting to the bubble pack GMRS as well. It isn't just the CCRs. It all comes down to price.
There used to be reasonable radios...I have a closet full of them. Ranger made the color dot business radios, Motorola had color dot/business radios, and all were very reasonably priced. There are still some off-brands out there that are reasonable, but you're still over $100 for most of them.
The business owner up the street from me needed 6 radios for his store. He bought Baofengs. They work great for his purposes and cost him $10 a piece. What business owner would not go for a deal like that? It's fiscally responsible.
As I also mentioned earlier in the thread, a local school district could buy 100 throw-away CCRs or more for the price of 1 Motorola radio. What would you do if you were in charge of the district's budget? It's a no brainer. They went with the CCRs.
People are not willing to pay exorbitant Motorola prices anymore, and in the day of the interwebs, Motorola no longer has the monopoly they once had. I honestly have a feeling that there are plenty of people here who would still be pissed off at the CCRs even if they were all FCC certified, simply because they aren't Motorola, Kenwood, or Icom.