I would like to see the full service airlines do what Qantas has done and advertise their fares competing with the low costs and state that it includes a checked bag. They then police the hand luggage severely. It was a pure pleasure to fly with them recently as the aircraft were boarded quickly and there were no concerns about where the bags were going and all fitted very well.
Given that full service carriers have all the infrastructure in place for this they should play to their advantages.