The real problem is the FAA mandate to police AND promote aviation. If the NTSB had enforcement powers stuff like this wouldn't happen. I wonder if the FAA personnel who apparently knew about this were former SWA employees.
The FAA overlooks a lot of stuff for expediency. Another FAA allowance that will make no sense to the public when there is an incident: CAL uses only FOs on all flights requiring one (or more) IROs. As a cost saving measure, they received approval from the FAA to allow FOs to act as captain of a flight if they are type rated. All FOs are type-rated so there are no more captain IROs. Other airlines may also have this. Imagine a 777 over the pole having a serious problem (dual engine failure?) while the sole captain on the flight takes his sleep break. Two FOs up front are legal because the FAA allows any type-rated FO to fly as PIC. While this may make sense to pilots, it won't make sense to a CNN. The interview will go something like this:
CNN: "Where was the captain?"
CAL: "He was in the back sleeping."
CNN: "You mean to tell me there was no captain flying the plane?"
CAL: "Two first officers acting as PIC were flying the plane."
CNN: "What's a PIC?"
CAL: "Pilot in Command. A first officer that the FAA has allowed to be in sole control of the plane is a PIC."
CNN: "So the first officer was also a captain?"
CAL: "No."
CNN: "Can this first officer can fly as a sole captain on, say, another flight later in the month."
CAL: "No."
CNN: "Why not?"
CAL: "They require six weeks of training to fly as a captain."
CNN: "Did any of the three first officers on this flight have six weeks of training as a captain?"
CAL: "No."
CNN: "If they require six weeks of training to fly as a captain, then how can they be flying as a captain now, without the six weeks of training? Are they captains or not?"
CAL: "They're not."
CNN: "How can the FAA allow you to fly a 17-hour flight with only one captain, who has to in the back for several hours for rest? What if there is a terrorist incident and the flight deck gets locked down so he can't come back up?"
CAL: "Not our problem. Ask the FAA."