The revival of allocated seating can happen for hold luggage. There will always be a need for those in a hurry to get through the airport as quickly as possible hence a need for sensibly sized and weighted carry-on but I'd suggest that for the majority, the option to put bags in the hold, free of charge, should be reintroduced and the first airline, particularly a loco, that does this will reap rewards.
There are no really cheap fares these days and a pound or two on a fare (which is an unknown variable in any case) would help alleviate the problem.
From Virgin Australia
Saver fares include complimentary food, a selection of beverages and one piece of baggage up to 23kg.
And 7Kg carry on baggage