There will be a market for these seats as they will most likely be tolerated by the younger (and fit) generation of passengers with little money - and then maybe only on relatively short flights (1 - 2 hours). I can't see the older generation accepting that level of discomfort at all. I certainly wouldn't. The more LCCs fit these type of seats the more new business will go to the legacy carriers. There's of course also the possibility that LCCs will have 2 class cabins: Extreme Cattle Class and Standard Cattle Class.
One thing is for sure, unlike AIRWAY, I won't even be forced to use one of these new seats. I'd give up flying if that's all that was on offer in Y class in the future.