Heres a little business 101 Ellen:
The regional carriers will not continue to lower the bar to the point that they can't make money. There will come a point where the management at the regionals will take a stand and say to the mainline carriers "look, if we do it cheaper, we will lose our shirts. This is our offer, take it or leave it." Even if the pilots and FAs worked FOR FREE airplanes, gas, facilities, equipment, etc. cost money. Bottom line: the regional airlines are in business to make money. They aren't providing a service because they get a kick out of flying around little metal tubes full of people.