It also means that you're often still out actual money if you use award miles.
It also means that you're often still out actual money if you use award miles.
Checked bags are also extra for either seat.
I'm not even talking about pay-by-weight as was famously tried between pacific islands. Nobody wants to have someone spilling over the armrest into their seat, and I'm sure plenty of people who are wider than the seat would like to fit without going first class. I'm not even so unusually sized, but cannot sit in the aisle without being hit by every person and trolley passing by.
The problem with PE is that it's often not that great of a deal. Unless it's a super busy route, you can usually keep shopping for an upgrade and just go all the way to lay flat business. Side note, when going business class, understand that not all plane layouts and seats are the same. Check seat guru.
Source - I fly back and forth to the EU quite a bit.
To your other points, at the end of the day, it's an airplane. And since I'm usually flying US airlines, even business class isn't that special outside of laying flat. I do fly back and forth to the EU enough though, that being able to work for 4ish hours is pretty useful.
And compliance is hard for passengers, because you have to call in to book the special case, and who wants to call in?
But theoretically, a passenger that will encroach on an adjacent seat can pay for the extra seat (I don't know if they need to also pay for seat assignment to get two seats next to each other), and then if the flight doesn't actually sell out, the extra seat fee is refundable. But when you actually board, people will see the 'empty' seat and try to sit in it, even though you paid for it. Etc.
To get some extra legroom, I paid (round trip, in CAD) $250 for a trip to Dublin this year and $320 for a trip to Hong Kong in 2023. That's a lot of money, but it was <50% of the cost to upgrade to premium economy and <20% of the cost to upgrade to business class.
This used to be much cheaper. I remember paying ~$100 for similar upgrades a decade ago, but airlines got wise to this at some point and jacked the prices way up.
Yeah. For me, $5K or whatever is still a decent amount and, even if you just put it in the vacation pile, that's a decent amount for meals and other experiences vs. being a bit more comfortable over a 10 hour (or whatever) flight.
The other part of my equation is that I put a 'dollar figure x flight time' that I'm willing to pay to be more comfortable. If I see a price that hits my threshold I upgrade, otherwise not.
So you can roll the dice and try to get a premium seat at the gate, but that's not a risk I'm usually willing to take.
Four
How is that even worth the packaging cost
Lastly, there is always the risk of a lost bag once you no longer have it with you. One fight years ago they forgot to load all of the car seats and gate checked bags that were left at the end of the ramp. We were stuck waiting 90 minutes for the next flight from that destination to arrive since we needed the car seat to drive our child home.