Not true. If this happens on a large scale (and I think that this festering dispute increases the possibility of this), then pax will vote with their feet and the airline will take a big revenue hit.
Sometimes this is the only way large corporations develop the will to resolve issues.
I believe that allowing the dispute to drag on is a very dangerous game for both sides to play.
The potential cost savings look very good, IF one can deliver the loads and yields
Not necessarily true either. Going by some of the reports and posts on here, BA should never have any passengers in Club or First any longer but my partner based at LGW has said that the premium cabin loads are still very good. And before anyone says, no that doesn't include staff.
At the end of the day people will want to travel and if people have money where the choice is either charter or BA Club/First, chances are they will fly BA. If there are bums on seats, BA won't see any issue. To get something done about a bad experience, the company needs to be informed directly