I think it's great. If you can't get your belongings into 1 checked plus a carry-on, you're taking TOO MUCH. If you really need a pile of things, you're going to pay for the priviledge. $25 is a lot less than sending goods UPS air or FEDEX.
Sure, it will hurt the VFR's. But they're the exact rookie's who bog down the whole system.
I think we've all seen travelers with AGGREGIOUS amounts of baggage at the airport. I'd swear they're MOVING, not traveling. Why should I wait for all that baggage to be processed? Why should I wait longer for MY bag to come off at the other end?
I think other carriers will eventually follow. Carrying around an extra couple of tons of needless baggage costs a lot of money. Heck, Air Canada is so conservative, they'll barely let me bring my laptop on-board.
It's the wave of the future.