As discussed at insane length, airline pricing on specific routes can't logically be explained.

Could it be that CO is selling more seats than the competition? Maybe. Could it be the "fortress hub" mentality that acknowledges there's very little competition NYC-SEA nonstop? Yup.

The "honesty" thing is a different issue - if you feel CO's shafting you, get out of there - there are too many other options in NYC. Crazy to give money to a company that you don't trust if you feel there are equivalent or better alternatives.