Correct me if I am wrong, but when these fees showed up, my ticket price did not drop by the same amount, correct? So adding a fee, no matter how much of a "good deal" it is is still a addition to cost.
So airline ticket prices have been dropping to the point that airlines don't make money. So the baggage fees, yes, did not cut ticket prices, but ticket prices were arguably too low to begin with.
It would have been better for airlines to honestly increase ticket prices, of course...