While I agree that children should always be seated and safety-belted in vehicles, the "controversy" is the airlines fault IMHO.
The difference in taking a vacation or not (if you have small children) is often the extra $1000 or so it will take to get two kids on a plane with mom and dad.
Many arlines (CO included) have removed their reduced fare/mileage level for child tickets/awards. And I believe there's only one that still does a "kids fly free" (Southwest).
If airlines had a "children under 10 fly for $100 with a paying adult fare" People would buy the seats, kids would be safer, and airlines would make up any loss with the additional volume the policy would create for moms and dads.