I'll agree that the ULCC's have an enormous cost advantage over the legacies. It's embedded in almost every facet of the operation. How much more are you willing to pay just for a TV and a power outlet on a three hour flight?
However they need to invest in IT infrastructure and their front line employees if they want to have a chance at competing. Better communication and transparency with their customers would go a long way. A clean, reliable product is probably good enough for the vast majority of the flying public.