You can look at it two ways..
Low fares is there such a thing anymore, nothing like the low fares of 3 - 4 years ago. I personally think low fares are gone forever with the increasing taxes and charges. Ryanair/Easyjet prices are increasing, but is there anyone else offering cheaper fares on a regular basis? - big percentage of pax will always go for the cheapest seat.
Low Cost Model Given the current economic climate, the low-cost model is performing the best and there is no reason to think it wont continue. One type fleet, screw your suppliers to the floor, demand cheapest charges, most businesses outside aviation will do the same to keep costs low - it's common sense.