Well, I've only been Moose-side for 5 years, but the parallels in that time between AC and the dead / dying / zombiefied European legacy carriers such as Sabena, Swissair, Aer Lingus and Alitalia etc really are striking. My biggest personal concern, at least on the monthly transatlantic flights I make, is the sheer lack of enthusiasm for the job exhibited by 70-80% of the cabin crews. This is not 'AC-bashing', it really is a simple fact. As a paying passenger, it appears that far too many of them would rather not be there.
I am sure all the historical factors mentioned above all play their part in the current mess. But the upshot is that many paying passengers like me simply chose to 'book with AC only if there's no convenient alternative flight.' It's my money and I've been disappointed too many times. End of.
As to the future? These things do, eventually, end in tears. Probably one of two ways. Effective bankrutcy along the lines of Sabena with something like SN Brussels(?) or whatever hanging on in the deepest shadows, or yet another botched-reincarnation attempt on a smaller scale like Alitalia until the inevitable repeats 3-4 years later. Given the level of political meddling, I'd say the latter.
We'll see.