Technically I think the more correct response here is that the U.S. is one of two countries in the world (Eritrea being the other - and never a good country to be compared with) that have a Citizenship based system of taxation.

Secondly - as you pointed out - U.S. citizens who make more than a certain amount and live in a low/no income tax jurisdiction will end pating U.S. taxes.

Not to mention the dacronian reporting requirements.