European cheap flight updates

Ryanair have indicated they would like to reduce the amount of hold baggage for some time now. They even hinted they would charge for handlingand stowing checked in baggage. Flybe beat them to it when they introduced a discount for passengers with only carry on luggage and charged economy travellers for checking bags into the hold. Ryanair have now announced their own scheme, which they will implement from 16 March 2006.
In it passengers with only compliant carry on bags (must not weigh more than 10kg and be less than 55cm x 40cm x 20cm, in dimensions), will get a discount of £2.50 (€3.50 euros). In addition these passengers will be given priority boarding. Passengers with hold baggage will get an increased allowance of 20 kilograms, up from the present 15 kilograms. However they will need to pay £2.50 (€3.50 euros) per bag if booked in advance via the Ryanair website. This fee rises to £5.00 (€7.00 euros) if not pre booked, prior to turning up at the airport. Effectively this means that these passengers will not experience a rise in fares uless they fail to pre book their luggage or travel with more than one item. In fact they get an increased allowance for no extra cost compared to the present time.
The effect will be to reduce air fares and the time spent at the airports for passengers with only carry on hand luggage. The remaining 75% of passengers with hold luggage will pay more than them and spend more time at the airports.
Up until now 25% of Ryanair passengers don't check in baggage to the hold when travelling. The airline's view is that these passengers subsidise those with checked in baggage. The changes will redress the balance.
The scheme will reduce the airline's operating costs by reducing the need for staff to check in luggage, making electronic check in a practical proposition. It should also encourage the carrying of less luggage making aircraft lighter and thus more fuel efficient.
I feel it should stimulate some imaginative ideas for travelling with a bag less than 55cm x 40cm x 20cm, weighing less than 10 kilograms.
What do you think?