I've flown Virgin America's business (I think they call it first) class when it was only a $60 upgrade (SFO to LAS, not a long flight) and it was the only truly enjoyable flight I've had, at least since I was a kid. But I probably wouldn't do it again, even at sixty bucks, because heck, sitting in a comfortable chair isn't
that fantastic. I can do it at home for free. And while I got a free glass of MacAllan 12-year, they still didn't give me anything to eat except a bag of chips.
But yeah, in economy class there's only so much that can be done to make the flight more enjoyable without giving people more room, and getting a little more room turns out to cost more than most people are willing to pay. Still, I'll take a Virgin America flight over an American Airlines one any day.