You're looking past the point guys, their main motivation for no longer producing them is they are probably at best 2% of their sales .. it's just not profitable for them to keep doing it. The fact pointers are also becoming increasingly illegal in many places is probably part of the reason why (including reduction of sales), but CNI is a business, they care about profit, not the tiny 2% of pointer sales.
If that were the case, why don't the companies just say that directly? "We're sorry, but this is a business decision and our shareholders feel that our efforts are better directed at the scientific/laboratory/medical market." Why the restriction based on power, i.e. <5mW?
Because they're caving to the FDA and its waste-of-a-paycheck goons, that's why. I don't see why they need to, it's not as if FDA can ban them from doing business here - universities, medical facilities, and similar agencies would all pitch a fit. They can't ban CNI without banning others because it would violate things like the equal protection clause and whatnot. Lawsuits would be filed, FDA would have to cut into its budget to defend itself, and ultimately they would lose. It's a business decision to cave in that it's cheaper to cave than tell FDA to fuck itself, but it makes me glad I never supported CNI or LG by buying any of their products - they are cowards and deserve neither my respect nor my money.
FDA is basically a bully in this regard, they will talk tough and make threats to small entities such as individual people and small companies, but like all bullies they would turn tail and run if a company like CNI decided to fight any sort of "ban" FDA might try to impose.
Lurking FDA shitbags - instead of harassing laser users, how about regulating things that are actually dangerous, like dietary supplements and homeopathic woo bullshit? Dietary supplements' effects range from nothing to outright dangerous. Homeopathic quackery kills people by causing them to forgo medical treatment. "I wish you had come into our office a year ago, we might have done something about this. Unfortunately, you now have stage IV cancer and 3 months." You won't do it though, because those companies have money to fight you, and it would take some effort on your parts. You FDA trash are all worthless cowards.