I'll add a little first hand experience to the "old days" of flying subject. Over 20 years ago, mid 80s, I took a business trip to Japan and Taiwan. At the time, our company policy was to fly business class to Asia for ANYONE, even me, a young engineer a few years out of school.
So I have a front row aisle seat in business, tons of leg room, flying a 747 from Seattle to Tokyo. Flight attendant asks me if I'm traveling alone and would I mind taking a different seat to accommodate 2 people traveling together. Well, I'd specifically reserved this seat well in advance and was hesitant, until he leaned close and said quietly "I have 1B open". Uh, that would be up in first class, eh, yea, I guess I'll change.

Most of us are wearing suits or blazers, traveling on business, you have one less thing to pack. The flight attendants wore white gloves and brought silver trays of hors d'oeurves (sp?) around, we had glass wine glasses that were being filled from bottles, it was an upscale cocktail party! And towards the front of the cabin where it narrows, there is a fair amount of open space, it was 5-8 feet from my seat to the bulkhead, you could mill around!
Then, on the leg from Tokyo to Taipei, I was on Singapore airlines, famous at the time for being rated #1 in customer service/flight experience/whatever. I rode in the 2nd level of a 747, which was pretty neat. Cockpit doors are in front of you, there were not too many rows, it hardly felt like you were on a big plane. Service was great, the meal was lobster, it was wonderful.
Now I think about that trip and compare it to squeezing into my coach seat - I'm about 20 pounds overweight, better than some, but still I should lose some, but my shoulders are wider than the seat! And despite being under 6', my knees whack the seat in front of me. Then they want me to pay several dollars for a sandwich that's like something out of a vending machine. Quite a comparison.
As has been posted, the fares have not gone up and I can see where they don't make money. IIRC, I read once that airline INDUSTRY as a whole, over it's entire life, has not turned a profit. But it's supply and demand, if they raise the prices to where they make money, I think it will reduce the demand because fares will be high enough for people to look for other alternatives. Less trips, other destinations, drive, etc. There is sooo much capacity.
irbgolfin