Some people are too tall to use up the precious space under the seat in front of them for their legs. Perhaps if everyone was not crammed in like sardines, they wouldn't do it. The overhead bags problem is a legitimate issue though. This is the law of unintended effects. If you charge for hold luggage everyone will try and avoid the charge by loading up on hand luggage. The airline save money on this... Hand luggage is managed by the passenger, hold luggage requires baggage handlers. So they are happy to have you do the work.
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