Sunfish,
While agree with a number of your sentiments, particularly that LCCs are very short-term focussed, that is the nature of business these days.
Ultimately the economics will come full circle. If LCCs are the only game in town - the owners of the training machines etc will start charging a proper economic return, there will be very few buyers for 10yo planes (only so many crappy LCCs or African airlines around, and not many with cash)
The one example where a full-airline has gone head to head with a LCC has not ended well. Ireland - Aer Lingus v Ryan Air. Aer Lingus decided to try and stop the rot too late, dropped out of oneworld, began becoming an LCC. Now it finds itself 30% owned by its former competitor and pretty much in no-mans land.