Racedo,
I think you're only seeing half of the picture....
BECAUSE of the LCCs, the likes of BA have had to change the way in which they operate and also, what they charge for their tickets.
Sure, all airlines would love to have lots of spare crews, spare aircraft and enough money to pay the baggage handlers what they feel they deserve, to stop all the cancelations, strikes and to stop the baggage screw ups.
However, due to the changing market, BA and the like have had to move with the times and adjust the way in which they operate thus cut costs and save money.
Not that I was around then but I'd like to think that the airline experience in the 60', 70's and 80's was a darn sight better than what it is now.