Pillows blankets and overhead space run out for the losers at the end.

I didn't even know there were pillows and blankets. I rarely use the overhead space. I've never seen it run out, and I rarely fly on flights that aren't maxed.

I actually count on them to run out of overhead space. It's a free checked bag! Albeit a small one... I'd just rather not have to deal with trying to cram my carry on into an overhead, and then the psychotic rush to grab it and run down the aisle as people behind you try to trample you when leaving. Nobody has any chill anymore.

One difference is who gets forced to check bags so that the dozen companies that process the luggage steal, damage or lose your bags.

That's because carry-on luggage policy is rarely enforced. So people have to make do with rushing. Some people take multiple items with them on carry-on and do not use the seat in front.