Are the "Extras" a Key to Airline Success?

The Chicago Trib ran an interesting article about airlines offering up extra amenities to keep customers coming back to them. I have been told by more than one airline brain that anyone can compete on price, its the service that brings them back. I'm mixed on the theory. Take my recent experience looking for flights for an upcoming vacation. My first look is always for low price leaders. So the frills have not changed my initial shopping strategy. Sun Country Airlines and Northwest Airlines led the way...but only on a brutal red-eye both ways...nnnnnnext. Sorry, flight times matter to me especially when travelling as a family. A small jump up the pricing ladder brought me to Frontier Airlines and American Airlines. Both flights were competitively priced, had decent times and required one stop. So who wins? Frontier Airlines. Why? Because I want to see DirecTV in action, I have heard many good things from parents with happy not bored kids during the flight. So yes, in this case the extras helped but only after my low price stategy failed.
Obviously Southwest Airlines flies in the face of this theory as they are the undisputed low-frill-take-your-seat-and-be-quiet-low-fare-king. They do unbelievably well at managing expectations in that niche as witnessed by their lowest complaint rate in the industry. Maybe that's the point. Instead of challenging Southwest on low fares alone airlines need that something extra and that needs to be more than a frequent flier program. These programs are seriously damaged goods right now as the difficulty in using miles has become legendary at this point. Whether its something like DirecTV or even warm freshed baked cookies (mmmm...Midwest Airlines) its good to have an angle.