When I first started preparing tax returns, all returns were mailed into the IRS and states. When paid preparers were allowed to e-file, many taxpayers who could do their own returns started having them prepared to take advantage of the speed of e-filing and direct deposit. With the Free File Alliance or other online filing options, taxpayers can receive the benefits of e-file with out having to pay someone to do their return. I don't have a big problem with online filing as long as the people who use the service don't think I should provide free tax info when they have a problem.
I do have a big problem with "paid preparers" using Free File or other online service to file a client's tax return.