Are you suggesting that many/most people don't buy airline tickets primarily based on price? Airlines would be happy to fly all business class planes if that's what customers wanted. (And it's been tried but mostly isn't what people are willing to pay for.)

Price has always been a factor. It is a non-trivial amount for any international travel. The old country business travel can easily reach beyond what is reasonable. And I evaluate my trips based on cost and comfort ( I am way too old now to travel 12+ hours squashed ).

But you are, overall, wrong. The goal is, and always has been, milking. Extracting maximum of milk with a minimum of moo. The current breed of travellers are docile and compliant ( I honestly don't know my parents would have been able to pull some of things they did today ).

Consumers are idiots. I sometimes wonder if they even saw how things could be.

The success of Ryanair is the market decision.

I am willing to give you that. My opinion might be tinged by Frontier experience ( never again ). That and I don't really want airlines approach something along the lines of New Delhi and Rajasthan train. It is possible my personal preference is blinding me a little. Would you accept that Frontier and Ryanair lower the bar and make decision makers at 'established' airlines wonder why can't they do the same?

>Frontier and Ryanair lower the bar

Absolutely. Over the past few decades budget airlines have made it obvious that there's a certain (fairly large) class of passengers who will endure significant inconvenience and discomfort is it saves them a couple of dollars.

The traditional airlines certainly have the option to say "Nah, we're not going there." But, for example, business class-only airlines and routes generally haven't worked out for airlines.