Passangers are sensitive to travel time but the constraint is placed firmly on cost, particular on major tourism destinations where airports are already saturated.
Furthermore, some international and national air travel networks are in fact organized in a hub and spoke pattern, particularly trans-oceanic flights where demand is high and cost is the main competitive advantage, including business travel.
It's easy to claim now that the choice that was made a couple of decades ago was the right or wrong one, just like it's very easy to pick yesterday's lottery numbers, but if the world economy didn't tanked and if Airbus's projects weren't with so many delays then I really doubt Boeing's bet would be so right.