You don't work in marketing for BA do you?
I should point out that I now live in Dublin, so my SH choice is Aer Lingus or Ryanair. I agree that Ryanair aren't cheaper. They've forced everyone else to lower fares, which is good, but personally I think Ryanair has passed its usefullness now. I go to some lengths to avoid them, eg when I go to Aberdeen I now fly with Aer Lingus to Edinburgh and hire a car! Bit more expensive but also less unpleasant.
I'm not that fussed about getting fed and watered on short haul. I can use the lounge with Aer Lingus, so get something to eat and drink there before I get on the plane. Not as good as the BA lounges, I have to admit. I remember getting bacon sarnies and champagne in there with some fondness!
I hear what you're saying re T5. The problem for me is that I have to transit from T1 Domestic gates 80-90, which is a nightmare. Last time I did it (to T4 - pre T5) it took longer to get between terminals than it did to fly from Dublin. If I'd booked the DUB-LHR connection suggested by the BA web site I'd have missed my flight to Mumbai. Fortunately I ignored the BA suggestion, and booked an earlier DUB-LHR flight. Good decision considering I had to get the Tube to Hatton Cross and then one back to T4 in order to get between the terminals. Result? I decided to try transiting Schipol next time I flew East, and have not had a problem since.
T5 may well be great, but I've now had three years of acceptable experience away from LHR, so feel no inclination to go back to the kip that is Heathrow! This is indicative of the problem BA has, I think. It has alienated passengers over several years and now we don't see a good reason to risk using them again. My own catalogue of horrors comprises 4x lost luggage (3 on successive trips between LHR and Scotland in my pre-Ireland days), the aforementioned nightmare T1-T4 transfer, and a 12+ hour flight back from Tokyo with no catering, courtesy of one of BA's many industrial disputes. That last one was on a £4k CW ticket incidentally. It's not exactly indicative of great customer service is it?