I fail to see how FF programs have led to a downgrading of service?
The reason, planes are crowded is more people are flying.
In the US, 25 years ago, very few americans flew. For the average middle class american, air travel was a rarity.
Go back 45 years and only the Jet set traveled by air.
Air travel has become more democratic, and less elitist over the years.
Personally, I think airlines and hotels are the most customer responsive industries. When was the last time you saw a special checkout line at Wal-mart or Sears or Macy's for frequent shoppers.