I agree with TWO -- HP wants to be the "low cost carrier" of choice for business travelers. That's why they have maintained the first class cabin, such as it is. I think they're right that the first class upgrades, for the space, is what brings a lot of us back (especially given the dismal pitch in their coach cabins).

I also agree that the LCC 'obsession' is a market issue. Right now, on the Street, an airline distances itself as far away from the legacy carriers as possible, for obvious financial reasons.