Perhaps Frady was finally convinced that Lee was correct that she was on a "list" to be killed, and that he was next, and decided to get a fake ID of someone no one would care about. If he were to continue his investigative reporting it'd probably be best if he's seen as just some loser misfit that isn't a threat to anyone and just wants to live below the grade. It just seems he would have changed his look along with that and not have his $400 Beverly Hills haircut throughout, but WB is, well, oh so vain. Plus, there likely is SOME photo of Frady at the Space Needle that day, that a company like Parallax would be on top of, and possibly noticed he tried to go up in the elevator with the Senator and Lee and whoever else. And lo and behold the same guy with the same hairdo is going around questioning the deaths, and he looks just like that journalist....
As brilliant as some feel the writing is in this movie, it has to be noted that they were basically writing the script as the movie was going, so there are going to be plot points that won't make sense. Hume Cronyn even asked the producers two days before he filmed his scenes if he was going to be a police chief or an editor. It was either brilliant to some or horribly thrown together to others.
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