Both sides have a valid point - if you pay cheap expect to get cramped cr@ppy seats. I have serious safety concerns about any flight with 26" pitch but that aside it seems real simple to me. Pull a few seats, raise rates to compensate and if the punters do not want to spend a few more dollars or pounds or euros - leave them at home - the world is probably better off without their influence anyway.
Airlines have to wake up to the fact that they are providing a service - and like any service it must have minimum standards or the customers will walk or sue or do something else stupid.
To all who advocate minimal fares so we can have an affordable holiday - where do you draw the line - 26" pitch, cut corners on aircraft maintenance, low pay for pilots, low time pilots??? In this world you get what you pay for and it is time everyone understood that paying a little more is not necessarily bad.