Which is partly the problem. Even with increased competition and falling fares/yield people still have the same high expectations of BA. I remember my days in a BA uniform when you really had to strive to meet and exceed expectations. Conversely, at the LCC end we are frequently praised and congratulated on our service..... Even if other areas have failed that day.
At the end of the day it's all about the name at BA. Infrequent fliers who happen to fly BA will be expecting the world but will no doubt be disappointed. It's amazing how many people still believe you will still get a meal on a short haul BA/LH/KL flight.
So yes BA can be cheaper on occasions but the service is not what many expect and there lies the problem.