The idea being that with a better product the service would be more in demand, increasing overal revenue. And while that would be true for myself (I would be more inclined to purchase business when the meal service is better), I also believe that may not apply to everyone. It may also be very route dependent.

Prices as mentioned above (400 euro r/t) that's something I haven't personally seen on AF since Covid times. When comparing a 800 euro AF roundtrip via Paris, or a 500 euro Aegean service (in my case direct) there is effectively only a single choice. If AF were to be in the same price realm, and especially if hot meals were included, I'd be much more tempted to fly them.

Part of the problem for pax originating in AMS is the AMS-CDG sector. These are often only available in high fare classes due to being almost exclusively feeder flights to longhaul. That drives up pricing immensely for EU flights originating in AMS and flying onwards from CDG. This may, possibly, be due to AF using A220 on the AMS route offering less capacity there.