In the US, we have more or less a capitalistic free enterprise system. Its doing what it should, the competition to fill their seats on each flight has driven the cost of flying down. In many cases I pay 15-20 cents per mile, or about 1/3 of what the IRS says it cost to drive a car.
That parts great, but because price has become the single most important measurement service has suffered. People simply don't want to pay an extra 10-20% for good service. We want cheap. On the other hand our airlines have a bloated infrastructure and cost associated with decades of poor management some of the smaller Asian airlines have avoided so far. The result is the nickle and dime charges, shoddy service, etc.... I don't see AA as any different than United, Continental, Delta, etc.... I tried Jet Blue and Southwest, they have their own (slightly different issues).
Personally I try to reduce the problem a bit with the frequent flyer status programs, airline clubs and learning to manipulate the system.