Seems like a good business plan...in theory.
I've been amazed by how many pax are willing to pay $150 for an upgrade at the counter on a 30-minute flight from MSP-MSN. Seems nuts to me...but then again my cash reserves are pretty trim. 3 class makes sense, especially in the so-cal market, where most people have a little extra $$$
What will probably kill this project is operating E170's out of a 4,900' runway at a southern latitude. There's no way a 170 could get out of this place when it's 100F, no wind, full pax. Even if they used flaps 4, TO-1, No Flex, ECS REF OFF, its still VERY sketchy at best. Even if this were approved by the FAA, they would be weight restricted on most summer flights out of there. + Imagine all the overruns they would have on landing into CRQ, the 170 does have a tendency to float, esp when its light.
Tho, I wouldnt mind getting a west coast base again, would be niiiiiice