"but the market spoke and the 737 won"

The "market" in this case was SWA. They pushed for the 737 to be continued.

In the early 90s Boeing actually sent reps to tell the airlines the 737 was in its last days. The reasons were, range, avionics (ClassII capabilities), lack of freight and aerodynamic efficiency. Well, 20+ years later it (-900) still doesn't have the range and flexability of the "replacements," it can't carry the same load and it is behind in the efficiency of the competitors. But, SWA wants nothing else.

The market speaks and Boeing listens!

As a friend of mine says, "people aspire to be average."

Boeing sells what people will buy.