I think it all depends upon frequency of travel. For my once/twice a year trans atlantic personal (non business)trips I would not be willing to pay $200 more for a few inches of room or slightly better food. I can "suffer" 8 hours and life goes on with $200 in my pocket. Short haul savings important to me would be speed of check in (less time in the damn airport)maybe even smaller regional airports...
Speed up the check in process with ATM style machines where I swipe my credit card get my luggage tags printed out, put them on, place my own bags on the belt; also choose my seat from the screen, and maybe choice of meal (fish, veg, etc) I have waited in lines that were as long as the flight! Just back yesterday from LGA to ATL on Airtran Boeing 717, and very impressed. New aircraft (very important when choosing a carrier), great freindly crew. I thought of the ATM thing while in line at LGA for 30 minutes just to get a boarding pass...I think American uses them in a few airports already..