That may be it's purpose for you, but no, that is not the primary point of fandango, the primary point of fandango is to look up movie times and to purchase tickets online without having to wait in lines. Expanding on that primary point will certainly cover what you are saying is the primary point, but no you are wrong if you think everyone is using it that way, or that is the reason it was created.
The purpose is not the purchase method, it's the utility provided by that method. What utility is afforded by buying tickets online for a place you will be traveling to anyway? Answer: You don't have to wait in lines and you don't have to make a second trip to secure tickets. What is the utility of buying from Amazon? Potentially cheaper prices and it gets delivered to your door with no need to drive to the store, drive from store to store, or wait in lines.
Those are the two problems solved by it that he failed to see or acknowledge. No one wants to buy online for no reason even if they didn't have to pay more. Even if the primary purpose was purely to provide an online purchase option with no reservation or line skipping option (still had to pickup at the box office; 1st come, 1st serve), well, then he was still off base because it would certainly solve that strange "problem."
He was just oblivious to the problems it solves and stubbornly doesn't want to admit it.
Anyway, there is still the phoneline ordering option the OP mentioned. If the only purpose were to provide online sales and showtimes, it wouldn't exist. Google and Mr. Moviefone did that just fine already.
Google "showtimes" followed by your zip code.