I agree with you ScottC.

As for "Legal Discrimination"...the way FlyRight is using that term...we do it all the time and it can be perfectly right and fair.

On the personal level:
I discriminate between airlines. Even when AmericaWest is cheaper, I'll fly United.

On the corporate level:
Every single airline 'elite' program is based on 'legal discrimination'. If one provides more revenue to the airline over time, one gets better service.
A specific example is United's E+. If you've paid a higher fare (or provided more revenue over the last year, i.e. are a premier member), you get a better crack at sitting in E+. What's wrong with that? (The only thing wrong I see is that I'd rather they follow AA's example and do MRTC.)

If I'm on a full-fare first class ticket, I expect better treatment than when I'm on some deeply discounted (or mileage award) ticket. Better treatment includes a bigger seat and priority when flights are cancelled.

In a perfect world (flights never oversold, delayed, or cancelled; security lines never more than a minute or two for everyone) none of this would be an issue. Sadly, it's not a perfect world.

Just my two cents,
-BP