You could argue that the very same point to point charter flights have actually improved in many ways compared to how they once were. i.e all economy 757's and later 767's.
Take the TOM product for instance. PTV's, meals are still served, seat pitch isn't bad plus a premium economy style cabin for those who want to pay for it. For your average leisure passenger travelling in economy there really isn't that much difference.
Give me the legacy via a hub any day as I like to clock up the airlines and aircraft types but quite frankly you average punter doesn't give a !!!!!. Long haul, many still want the frills but the kudos of flying the legacy's just isn't there anymore. There is still a bit of residual 'wow-ness' for those flying Virgin for the first time to see Mickey Mouse but even the Virgin innovation aspect has faded over the years.