Personally I agree with you on improving the SH J product (even just marginally to be honest), as I think at current prices the value for money is quite appallingly poor.
But I suppose the majority of travellers are LH feeders, corporate travellers willing to pay for flexibility, or then AY+ upgrades, so they can justify that.
I would love for them to introduce inflexible J 'business saver' fares (à la BA CE), but the upmarket holiday segment probably isn't exactly AY's target market though.