Ask people what makes them choose an airline and they'll probably tell you a tale about reputation, service, legroom, amenities, what have you.
Now stick them in front of a computer and tell them to buy a ticket with their own money and watch them pick the cheapest option regardless of the rest.
It's a race to the bottom because that's what people really want. When the rubber meets the road, most people want a horrible, cheap experience.
Why do airlines overbook flights? Because people would rather save $5 with a chance of being bumped than pay a little extra.
Obviously, we'd all love direct flights with sixteen feet of legroom, a hundred free checked bags, gourmet meals, free access to a library of every movie and TV show ever made, and for a price of $3.50. But that's not going to happen, because amenities cost money. When we're faced with the tradeoff, we favor low prices.
Once I truly realized this, I became a lot less annoyed with many airline shenanigans. Yeah, it's pretty annoying that as a tall guy I barely fit into the seat. But it's what I paid for. If it was that important to me, I could pay extra for more space. I don't, because, like most people, I prefer cheapness above all else.
You can get a much nicer experience if you pay for it. If you don't feel like paying for it, then what are you complaining about?
Not particularly related, but this line from the article caught my eye:
"It makes no sense to allow airlines to charge an astronomical fare just because a flight is nearly full, and a dirt-cheap fare for an advance booking."
What planet is this guy from? Of course it makes sense to charge high fares for a scarce product in high demand, and low fares for an abundant product in low demand.