I tend to agree with you, but I also remembered that we all complained a lot back then, too. The best thing I liked was that my standby ticket was honored by all the airlines, and if I couldn't get a seat on one, I just went over to another counter, and eventually I found something. The meals on the PHL-ORD flights were convenient, even if we complained about the food, because if you took a no-meal flight, you would be in the airport during meal time, and the only thing worse than airline food at the time was airport food.
But they also had better bus service back then, so if the short-haul flights were too expensive, you could always take a bus, or even Amtrak if you happened to be traveling somewhere served by Amtrak. So the expensive air fares back in the regulated era weren't as much of a burden as they might be today if they reregulated airlines.