As has been mentioned in the posts above, flying in the U.S. at least WAS different - and much nicer - back before deregulation. Since the CAB set prices and awarded routes, the best way U.S. domestic airlines had to differentiate themselves was service. I would however disagree a bit that flying back then was limited to people of means or business travelers. Us middle class folk flew too - just not as often, perhaps.

On a worldwide level, one area where flying has definitely improved is in International First and Business Class. Lie-flat beds are vastly better than the reclining seats of yesteryear. On the world's better airlines, meal service in international First Class is served when you want it, not when the airline feels like serving it.