No, a free market is supposed to get consumers what they demand (on the whole) at competitive prices. Evidently the vast majority of consumers want flights to be (a) as cheap and (b) as frequent as possible, so that's what airlines have delivered. A smaller number are willing to pay profit-generating prices for food or extra legroom, so some airlines offer those as options. Although I'm sure millions of customers would love it if on-board massages were offered, not enough are willing to pay enough for this service to make it profitable, so it's not offered (even if it would add "value" to the product). No demand, no supply.

Of course, this is demand in the "money talks" sense. I'm sure if you polled passengers and asked if they wanted more legroom, they'd overwhelmingly say "yes." But increase legroom by 10% and fares by 10% and everyone defects to another airline. AA learned this the hard way.