wendyg,
...the problem is that there isn't any way for the market to push airlines towards better service.
I find myself staring at that as well...
I've been gold SLF on US Airways for quite a few years now...
So, in a way we're at the opposite end of the spectrum.
As I said earlier, I've just got a MPL-LON return for something like 70 euros.
It allows me to go and see a bunch of friends for a weekend, something I couldn't have done otherwise.
For that I'm perfectly willing to walk half a mile at the airport, then across the tarmac to the plane, put up with only just adequate legroom, and pay for a drink onboard if I want one.
Especially since the aircraft are clean and on time and the staff is perfectly pleasant and competent, and the airline does not have a reputation for dumping planes.
Just thinking out loud.... maybe you should pay for everything else, rather than just have a choice between economy and business?
More legroom? That'll be so much.
Booking the day before? That'll be so much (happens already).
A meal of your choice?
IFE on longer flights?
Preferential seating?
Etc.
Different business model, and I don't know if it would be feasible.