It isn’t that passengers don’t want convenience, they all want extra legroom, lie flat beds, drinks, meals, flights that depart convenient to them but they only want to pay 1p for it (yes, I have flown Ryanair for 1p). However some passengers will pay more than 1p so you can sell them convenience. How much convenience each passenger will buy will vary with cost.
Here is an interesting comparison that I actually made this week. I flew from Barcelona to London, the choice is between Vueling and BA, two airlines with the same owner. After ancillaries, the price was exactly the same. On one, I was sitting at the front with extra legroom, I paid to take my baggage on board but went to a less convenient airport. On the other I had very little legroom, the same two bags went into the cabin for free and I arrived at a much more convenient airport. The choice I made was reduced legroom but more convenient airport.
The exercise every prospective airline CEO should do, before deciding anything else, is sit down with a blank piece of paper and decide where their new airline sits on the Convenience/Cost line. It is not the case that only lowest cost is successful now because some passengers will pay for convenience and the decision is how much convenience you give them in the basic ticket price and how much you offer with ancillaries.
Any prospective CEO who chooses the aircraft first and then works backwards hasn’t looked at demand, they have decided to supply their idealised version of an airline and ultimately have planned bankruptcy.