Yeah, I've encountered the open-every-foil-pouch routine too. It's a pain, but I grudgingly admit to its value.
I'm worried about what happens when airport security gets reprivatized. I really do like the TSA; they seem to have well-thought-out rules and follow them consistently, promoting both security and legally-protected rights. They've also been, in my limited experience, unfailingly professional. This is in stark contrast to what I've experienced at the hands of private security.
I particularly remember flying from San Diego to Portland once, post-911 but pre-TSA, where the hand check in San Diego consisted of a cheerful "Yup, looks like film, go ahead"--Anyone want to speculate on how much ammo you could get in twenty 120 boxes?
The return flight from Portland offered equal stupidity, but in the opposite direction. The security guard rudely refused hand inspection, her supervisor rudely refused hand inspection, and when I directed the supervisor to the sign by his machine guaranteeing the right to a hand inspection his response was "I don't care what the law is, it goes on the belt or it doesn't go through my checkpoint." Delusions of grandeur anyone?