As I recall, AccuWeather had Rick Santorum lobbying to diminish the role of the NWS in forecasting. So apparently market forces aren't quite enough to nudge customers in their direction - apparently enough people are satisfied with what they currently get for with their tax dollars.
Over $800 million in government subsidies is not “market forces.” That subsidy allows the NWS to give away its product for free. Unlike a private company, that subsidy will allow the NWS to stay in business even if it does a very poor job.