Reply #21: It's not so much "a false assumption" as it is

[Occam Bandage]

"the proven effect of dozens and dozens of discrete events in which airlines have differed in service quality and base coach fare cost." Everyone thinks they'll pay more for good service, but few people actually do--except for those who pay for first class. Hell, Northwest offers everyone the chance to upgrade to a seat in the exit row or bulkhead for about fifteen bucks. That's over double your legroom. Those are usually among the last to fill up. I've seen loadouts of flights in which the only people flying in those seats were non-revvers--airline industry workers using their flight benefits, who are given the seats nobody else wants after everyone else has checked in. People won't pay for quality.

Fliers resent terrible service. But they won't pay for any better.