If/when this happens, the reductions on price/service will stop. the fact that a flurry of low cost, low service providers are entering the market means the market is supporting them (or, at least, the providers think they will.)

Their success/failure will determine whether the market continues to evolve in that direction. Commoditization isn't a new thing - air travel is just the latest in a long line.

How low I'm willing to go isn't really relevant. Markets respond to aggregate demand.

I would challenge your bundling of health and safety in with comfort and service. What data do you have to show safety is being reduced? Certainly not air traffic accidents'fatalities.