Not sure about snob.........
£4.99/£9.99 fares are not sustainable. Ryanair can offer these as they make a lot of money on selling their aircraft to a leasing company as soon as they recieve them. They also have a lot of seats to fill, and this is where their ancilliary charges make up for the low fares. In terms of revenue, Ryanair is number two globally for the % contribution by ancilliary charges to their bottom line. When they stop receiving new aircraft expect fares to rise.
Flybe fares are more realistic/sustainable. They charge what they need to charge/can get away with, and don't have the surplus of capacity that Ryanair do. Cheap, mass market air travel is good, it keeps me in a job, £4.99 fares won't.
I would happily bet that the only significant cost reduction to the industry in the last 15 years or so is ticketing & check-in, and that is due to the internet. Companies have just had to become more lean to find other savings.