There use to be a thrill and even some prestige about having the ability to take flights to the places you wanted to visit. The stewardesses where well spoken and treated you like you were royalty (especially if you were a kid on one of the first flights in her life). You always got a set of wings and might even get a chance to view the cockpit.
Times have changed.
Even before the tragic disaster of 9/11, the fairytale allure of flights had already worn off. Today you are more likely to be pitied because you have to take flights to your destinations. The horror stories of delays and detainments on in the plane on the tarmac have taken the shine off the flying.
It would be a great financial benefit for the airlines to polish that shine back on to flights. More people would take their family on vacation through the air if they new that the experience would be one to remember for the good times (and not because of the long lines, staying over night in the airport or being stuck in the plans). More people flying would mean more money for the airlines.
As it is today, most people only book flights when they know they can get a great deal. You don't want to pay a lot of money for something you have to tolerate. If flights offered more amenities and more leg room, people would not only fly more but would likely pay more for the better experience.
For now, flights seem to be headed down hill. As the financial situation tightens for most people, even the inexpensive flights are something that they will pass on. In desperation, airlines are likely to add more seats, cut service even farther and generally make the experience even less appealing.