No, I think it's a reflection of capitalism. The airlines have figured out that filling/cramming their planes with economy passengers produces a bigger profit than a plane offering more passengers space with resulting fewer passengers.
If you want comfort on a plane today, you go business or 1st class, which is considerably more expensive than economy. The good news is that despite cramped accommodations, economy tickets/seats are allowing more (lower and middle class) people to fly than ever before.
When passenger ships were the primary trans-Atlantic means of transportation before airplanes - a similar phenomenon occurred. The very wealth enjoyed 1st class luxurious and expansive service and the middle and lower classes (the poor and less wealthy) could only afford steerage accommodations.
I can’t remember the name but quite a while ago there was an attempt by a startup airline or maybe just one plane that was setup to be all first class seating and service. It didn’t last.