Since XFree86 4.0 most people don't have a need to use xfs since truetype rendering is built into XF86...and one should not. But the xfs package contains a bunch of needed commands etc so it has to be installed and thus you get to use xfs. Commands like mkfontdir and others should be in another package so that we can remove xfs. Also /etc/X11/XF86Config (or -4) should default to no xfs!! Thanks
I've been thinking about splitting mkfontdir into another package for sure, however xfs is not going anywhere. It is a necessary part of XFree86. I'm closing this, but will consider the mkfontdir split at some point..
This change occured in RHL 7.3 or 8.0, not sure which.