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The reduction in tax is still substantial.

I've heard scare stories of dual nationals who have never been to the US being taxed.

As far as I'm aware, its the only nation that taxes its citizens in that way.

How is there any reduction in tax if expats must still pay US taxes?

There is foreign earned income exclusion. Which stops at $100K but this is still a lot for many people.

I’m not American so it’s not my problem, but it’s what I hear from other tax exiles.

My parents are American but given the choice for me to become American I declined due to the whole tax issue.

there is a "physical presence test" where you need to be resident outside the USA for 330 days or more a year.