1. People like business travelers or those with even minimal levels of status/benefits (who don't pay for checked luggage) don't usually preferentially check bags because luggage gets delayed, it's harder to switch flights when there's a weather etc. problem, and they have to wait at the luggage carousel.
2. Hard and hard-ish roll-aboards are a menace. Especially in a world of generally more casual dress, soft-side luggage would make overheads a lot more manageable--understanding that some people really can't use shoulder bags or backpacks.
We hate lugging luggage around the airport for layovers and now that we don’t live in ATL any more, we almost always have layovers.
On vacation I don't have my work laptop, so it's easier to toss toiletries and an emergency change of clothes in a small under-seat carry-on bag. Besides, tourists aren't expected to smell nice and look put-together, and are more likely to have a flexible schedule that would let them go shopping if the bag doesn't turn up.
Only once has the airline lost my bag while on vacation. It was only slightly annoying and they found the bag and got it to me eventually. I've seen a coworker whose bag was lost on a business trip to India. He was stuck wearing the same clothes - a tshirt and jeans - for multiple days. This included time in the office (which had a dress code) and at least one business dinner.
Not that taking everything carryon was really an option in this case, but I had a bag misplaced after a connecting flight was canceled. This was a group hiking trip but I had at least an extra day scheduled. Still spent about $500 to minimally restock although my bag arrived at literally the last minute before one of the guides left the hotel for our one-way walk.
At Copenhagen Airport, I usually get off the metro, walk to the luggage tag machines at the end of the platform and scan my passport (or boarding pass). That prints a bag tag (and boarding pass if requested), so after sticking that to my luggage I drop it off at the counter — I put the bag on the scale/conveyor, it scans the barcode, prompts me to press "Confirm" that there's no explosives etc, and I'm done.
I scan my boarding pass to go through the barrier into the security screening, walk to the gate, and very often scan the boarding pass again to get onto the jetbridge.
I can easily go from the metro to the plane without interacting with anyone. I understand this is Scandinavian bliss.
(Exceptions are trips to countries where I need my documents to be checked; e.g. to go to the USA a checkin agent has to see my ESTA visa waiver. Oddly, going somewhere like China which requires a printed visa in my passport does work on the machine, as the machine prompts me to scan it.)
I found American airports less hands-off (especially security, which is considerably more hands-on than I'm used to, "Sir, I will now rub your balls"). But then I'm almost always flying internationally out of the USA, so it's not a fair comparison against domestic (Schengen) flights in Europe.