First of all, I don't think anyone wants a system like they have in Europe. The system is designed to keep pilot wages low through fake competition and government backed airlines. If you want your pay cut 25%, then keep rooting for the LCC system like they have in Europe.
In reality, the death blow to the LCC's will be the pilot shortage. It really hasnt even hit yet, and the LCC's are already struggling. It is just amazing who is getting hired at Spirit right now. It shows you the desperation.
A guy that got fired from a previous regional for having too many training failures just got hired. 2 failures before getting to the airlines (Commercial and CFI). Then failed initial airline training on his first attempt, and then failed his first recurrent training. Then double busted upgrade and was terminated as a result. Now, instead of a ERJ, he will be flying an Airbus for Spirit. No college degree and 6 checkride failures. That's the current hiring requirements at Spirit.
What is going to happen when all of the "Big Boys" are hiring at full capacity?