I do think that a large segment of the population has quit flying. My dear parents, who could afford to fly if they wanted to, think nothing of getting on the road and driving from Myrtle Beach (where they live) to Ohio (visiting family). If my nephew makes it to the Olympic Swimming trials in Omaha next year, they'll be there- with car. Sigh. I worry about them.
Dad flew a lot in the 1950s and 1960s- he was in sales for a steel company. A couple of years ago he and my brother took a golfing trip to Scotland. Knowing my brother (doing well financially, generous, a lot of FF miles of his own), I suspect they flew Business class. Still, Dad was just horrified at what an ordeal travel had become. He hasn't flown since.