I don't know UA's strategy or tactics to execute their strategy. What I do know is my own perspective as someone who's taken quite a few flights over many years and that tells me UA should be concerned with what they are doing. TSA counts have already returned to 10% of last year, up from a low of less than 5%. UA claims they are operating 10% of the planned capacity. This tells us UA is running their flights nominally "full" (let's say at the normally high LFs) or they are losing market share. Pricing your product substantially higher than competition inevitably leads to market share loss and every airline executive will vouch for this. DL just announced they are adding flights in response to something of a rebound in demand so it seems DL are not the ones who are planning to lose share.
What's really changed in the dynamics is UA has cut capacity so much that their market power is largely gone. Two main factors for customer loyalty are convenience and, in some fashion, inertia. The convenience factor has been discarded with a 90% reduction in service. Hasn't that created a motivation for customers to status match at other airlines when they never seriously considered it before? This is not the time to be charging double the competition.