The problem with your theory is that there are enough LLC's out there that will flood the market. The name of the game is to make sure that you maintain market share, and let the LLC's falter on their current route system.
Many see what NWA and TPG did with MEH as a mistake that cost 100's of millions of dollars. Actually, it was money well spent, if...
It kept AAI out of MKE and forced them to deal with DAL in ATL. They have been hurt because they could not refocus assets like they wanted to. Now DAL could decide to leave the MKE market and AAI would get to do what they wanted to for free, but I would venture to guess that DAL will not allow this. If they do it is a horrible mistake.
Yes, capacity cuts can help, but not with Virgin, SWA, LLC, and AAI out there looking for anyway in to another market. Keep the planes and the lift and it lessens their chances of doing so. MSP is a gamble for LUV. They are betting on a pull down from DAL. It probably will not be like that, and we will see what LUV does in one to two years.