I agree with UA on this decision. I don't like it, but it's the same one I would make. Y flyers are almost universally concerned with one thing: price. And, if the Y flyers themselves aren't, then the people writing their travel policies are.
But what you fail to acknowledge are amenities, and all that United's competitors on route have to make mention of is their in-flight amenities. EG: Korean Air, Cathay Pacific, Singapore, ANA, and many others all offer superior coach IFE compared to United, and all it takes is for Expedia, Orbitz, and the other booking engines that many people us to start displaying this information and as long as the price is within a few dollars, United's 747 fleet has just become a draw instead of a savings on IFE costs.