For what it's worth, at least part of the problem should be fixed when the EU's Payment Accounts Directive [1] comes into effect [2]. It prohibits both discrimination on the basis of nationality (as long as the customer is legally resident) in article 15 and enshrines the right to a basic bank account in article 16.
This does not solve the other problems with FATCA, but it should eliminate at least one practical and very real annoyance for Americans living in the EU.
It just represents total capitulation by the EU - all banks will be legally required to have a relationship with the IRS and do their bidding, as turning away US persons will not be possible any more. As that's extremely expensive, in turn, those costs will get passed on to all the non-Americans. So everyone else ends up paying through higher bank charges for the costs of IRS compliance.
It's not being done for the benefits of US citizens, that's just a side effect. The goal of the Payment Accounts Directive is to ensure that every EU resident has access to banking services.
This does not solve the other problems with FATCA, but it should eliminate at least one practical and very real annoyance for Americans living in the EU.
[1] http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A3...
[2] Technically, the directive is to be transposed by September 18, 2016 at the latest, but some member states may be dragging their feet.