Maybe, but to a various extent. Some airlines are more strict with the rules than others. BA is legendary in ignoring their own policies, constantly leading to way too many bags on board. Then you have airlines like Ryanair which doesn't sell more carry on bag tickets than there's space in the overhead bin (this is the best approach imho). Lufthansa is somewhere in the middle.

But I agree with you. I've been saying for years that checked bags should be free and carry-on bags charged rather than the other way around. There's plenty of space in the baggage hold, but limited space in the cabin.