There is quite a few videos on youtube that go someway to explain the concept. Some are quite good, CNN had quite a good segment on Business Traveller some time ago (think it can be found on YT), with Quest doing it in his usual way, he's good at simplifying IMHO
I personally find airline pricing structure totally fascinating. Working in sales, I have usually always worked on cost plus agreed margins. So a model like this seems totally alien, particularly when a seat is a 'perishable' item as it were. However I totally understand an airlines reasoning.
The system is the main reason that all premium seats have not gone into a budget airline style price war. I wonder what would happen if a budget carrier launched a LH seat on the same level as the top carrier (minus IFE) but without all the lounge and premium food and extras. (i.e top rate hard product but no soft) Would it change the model..