The model proposed is basically the way airlines used to operate. You'd pay full fare for tix far in advance from a travel agent and then the airline would offload unsold seats to bucket shops to sell at massive discounts a few days before the flight.
Then some carriers came along with different business models and sold the first seats cheaply and subsequent seats ever more expensively. The fact that almost all carriers have now gone this way suggests that it is more profitable and also helps cash flow by encouraging passengers to pay as far in advance as possible.