You do get a higher level of service. You get where you're going faster and with fewer stops. You're far more likely to get an actual seat on a train. And even at un-staffed stations you have a covered area to wait, out of the rain (I'm sure there are some exceptions, and I also realize that some bus stops offer this, but the majority do not).

I do agree that it is the industry standard, and I also agree that this is the type of thing that will be a turn off to occasional riders, but regular SEPTA users won't really be phased by this after the initial learning curve. And I suspect that if money were not an issue, SEPTA would be buying new ticket machines for every station.

Instead of thinking of it as a penalty for buying on board, think of it instead as being an advance-purchase discount. Most sectors of the travel industry offer discounts for purchasing tickets in advance.

The only place I really see this as being unfair is for passengers arriving at PHL, who don't really have a good way of purchasing tickets in advance.