Yeah, I think they'd all love it. Everyone would be fat and happy like the good ol' Pan Am days. Pilots would make 300k a year, management would never take a loss, and Joe Passenger probably couldn't afford his ticket anymore.
That's why it won't happen. With the Internet, there's a lot more accountability these days, and everyone would question why the government is essentially subsidizing airlines and killing competition.
I think Deregulation was the right move - we are a free market economy, after all. But man, it would've been sweet to be a pilot back in the day.