As far as I've seen, no one has done a movement to ban tax paperers (either online or in person). If Intuit or H&R Block can provide a better website for $39 or whatever, they can. The question is if the agencies in question shouldn't develop their own replacements to paper tax forms.
Can you imagine it was 30 years ago and if, instead of getting tax forms mailed to you every year (or photocopies from the local library for a pittance 5 years ago), you had to walk down to the local H&R Block or other private company and pay them $40 to get the forms they wrote based on the tax code to file your taxes? It's pretty much the same thing.