The IRS own Taxpayer Advocate says FATCA is tormenting taxpayers.
From Tax Analysts:

By the time lawmakers and taxpayers have figured out whether the Foreign Account Tax Compliance Act was worth the trouble, it might be too late to undo any damage, National Taxpayer Advocate Nina Olson said October 7.
“However much I’ve tried to figure out what on earth [FATCA] means, and the consequences of it, I have no idea,” Olson told a luncheon audience at the Securities Industry and Financial Markets Association FATCA Policy Symposium in Washington.
“This is a piece of legislation that is so big and so far-reaching, and [has] so many different moving pieces, and is rolling out in an incremental fashion . . . that you really won’t be able to know what its consequences are, intended or otherwise,” Olson said. “I don’t think we’ll know that for years. And by that point we’ll actually be a little too late to go, ‘Oops, my bad, we shouldn’t have done this,’ and then try to unwind it.”

Nina Olson also says:

“So you’re really looking at this and thinking, why are we doing this to folks? Why are we tormenting them in this way?”

Actually, in that one question, Ms. Olson shows she does understand what FATCA is about. It is about tormenting honest people for having the audacity to llive outside the United States and become citizens of other countries.
Unfortunately, I don’t think this will provide any help short term. But it should be useful to both the Canadian and American lawsuits.