No, it's another in a long line of false analogies.

It would make no sense to price retail items that way.

It does make sense to price airline tickets by city pairs and not by miles actually flown.

If A-B-C costs $100 it is because some competitor prices A-C at $100, not because A-B is $50 and B-C is $50. Airlines charge higher prices to and from their hubs because that make up for lower prices between city pairs where there is competition.

If A-B-C costs $100 and A-B costs $150, that is because there is competition for the A-C city pair, but less competition for the A-B city pair when B is the airline's fortress hub.That is totally rational. Many businesses set their prices by demand, not by actual unit cost.

The only alternative would be a WN pricing model. WN is cheaper in some markets, more expensive in others.

I agree fully the Hidden City prices are irrational from the point of view of the customer, and that thousands of analogies could be concocted to illustrate the irrationality. None of those analogies are accurate, as they do not consider the particular situation of pricing airline tickets in a competitive environment.

Am I an airline apologist? No, I'm a database administrator by profession and analyze various scenarios without emotion. It is clear to me that the occasional Hidden City violator will have no negative consequences, so long as they

1. Skip the last segment of a trip
2. Take carryon baggage
3. Don't make a habit of it

Do 1-2-3 and you'll be fine. No worries.

Commute to work for a couple of months with Hidden City tickets, and you risk finding yourself in legal trouble. You can concoct all the false analogies that you want, but His/Her Honor the judge won't be amused.