That's exactly what I was thinking Sandy! We have a new Michaels opening soon in my area, first one ever around here, and I will contact the store manager and see what their policy is on the WUA squares, or if they have a policy on it. I had never heard you could drop them off at a Michaels, so will definite check this out and offer to help seam them for local charities.
I think that was what Warm Up America's initial intent was... to get knitters involved in helping everyone in America by knitting warm blankets, and it sort of grew into this huge project which became too big for one person or one small group to collect all squares, seam them, and then send them around the country, so they eventually asked people to take it upon themselves to keep WUA going on a local level... and it saves on postage too!
I'm not totally sure about this, but think I read it somewhere (maybe on their website?)... I'm sure there would be something about it somewhere. In any case, all of us have local shelters and other places that could use a nice warm afghan, so don't let the actions of a few keep you from knitting for those who need it!