(Arguments saying it can't work because thats how flights used to be and ended up where we are ignore that those changes were gradual with all airlines competing together to erode their quality. A new market entry of what I describe would be sufficiently different to have marketing reasons to not compete on price, etc)
EDIT: Welp, apparently its been done and doesn't work or is simply less profitable. Still makes me sad there isn't a middle ground between sardines and sheiks.