I submit my taxes for over 20 years with turbo tax and became aware of this issue in the last few years. So far nobody has ever questioned me on these numbers. Yes, I know they are inflated for the reasons you pointed out. If you fill out the FBAR it again asks for the max amount per account in the las year. They are not asking how much money is in a foreign country. Moving money between accounts always inflates the number. Sometimes to get to the real number is tricky.
