I'm going to go with "let the market decide" on this one. People want cheap fares, airlines need to make money, something has to give. I'm against government intervention that would force airlines to change how they design their product, or however you want to call it.

But I'm also in the "let the market decide" camp in terms of restrictions on carriers operating in the country. Let the ME3 have more access. Alas, their Y products are equally terrible (I believe...actually did a short haul on EK Y and it was painful). But eventually more competition will lead to some players trying to gain an edge...either by making Y more livable, or lowering the price on PY or J products.