In real terms, air fares are at historic lows. That side of the equation is often forgotten when discussing airlines' "enhancements".
By what measure? RASK is at a historic low on LH? I'm sure their shareholders are thrilled.
I can only provide anecdotal evidence, but it does seem to prove your point (somewhat, I still miss the good old days of 2007 crisis). Just not on LH.
Where I live (FRA), today I can choose from many more direct routes than, say, 10 or 20 years ago. Not having to use connecting flights is a huge quality improvement for me personally. As are online check-in options (no more dreaded lines at the check-in counter when flying Y).
My local airport traffic has increased ten fold probably, and so has the route network. Thanks to it, I'm relying less and less on my previous carrier of choice (LH) and have plenty more direct routes on cheaper carriers.