Acronyms are a very minor evil, but like many minor evils, they can add up. Our modern world is nearly drowning in the things, and worse yet, since there are only so many two and three letter combinations, they tend to overlap. "AA" might stand for Alcoholics Anonymous, or Anti-Aliasing, or Anti-Aircraft, or probably several other things from fields I'm not familiar with.
When people need to discuss something often, they must invent language which makes it convenient to do. This is well acknowledged. But acronyms are not the same thing as the ordinary invention of language, because acronyms are not really words. Acronyms of course serve the same purpose as a word; they signify something. But unlike words, which fulfill this purpose humbly, for every acronym one should also know what it stands for. What is stands for is of course typically another way of phrasing its meaning, except the phrasing is typically done badly. To take a simple example, "TCP/IP" stands for Transmission Control Protocol [over] Internet Protocol. Those familiar with computers will know what TCP is, and also what IP is. (TCP is a protocol between two sides which transmits sequenced data packets reliably; IP is a protocol among many sides which carries an address so it can be sent to the right recipient.) If you were told that "TCP" stands for "Transmission Control Protocol", you'd know that it's a protocol, but you'd know nothing else important about it. "Internet Protocol" tells you similarly little. TCP/IP might as well be called "Fred/Wanda", or better yet "Xank/Nobbo", since that at least wouldn't collide with other existing words, requiring the extra labor of disambiguation, however slight that labor typically is.
So why do acronyms exist? There are three chief reasons: laziness, fear, and pompousness. Acronyms are easy for the creator to make — all you do is come up with a bland, stupid phrase and then take the initial letters. This is a very backwards distribution of effort; the creator only comes up with it once, but people use the acronym quite often.
The fear which motivates people to prefer acronyms to making up words is the fear that they won't be taken seriously. For some absurd reason, more people will be suspicious of "Aloucra" than will be suspicious of "People for the Eating of Tasty Albicore", abbreviated PETA. There is some legitimacy to this fear, but people can get over quite a lot. The recent move of large companies to come up with completely made up names like "Altrea" may bode well in this direction.
Finally, there are people who use acronyms like cockatoos use their crest — it allows them to come up with huge names without being laughed out of the room.
Unfortunately, I can offer no solutions. Human laziness perhaps the most powerful governor of human behavior. Still, it's a pity that people are so determinted to write without saying anything. That people feel the need to abbreviate "Local Yarn Shop" as "LYS" suggests that one day we'll dispense with words entirely, and write entire books as nothing more than a string of initials. "Many years ago there lived a hunter in the great green forest with his wife and children. One day, a strange old man walked into his hut and said, 'Robert, the time has come.' Without a pause, the hunter looked up and asked, 'The prince has been born?' 'He has,' replied the wizard." will some day be written "MYATLHGGFWC.ODSOMWIHHS,'R,TTHC.'WP,HLUAA,'TPHBB?''HH,'RTW."
Winston Churchill once said, "This report, by its very length, defends itself against the risk of being read." Our language is moving in something of the opposite direction — by its very brevity, it defends itself against the risk of being understood.