Probably because the American public needs a quarter to buy a clue. Last time I looked, the number one fear of the flying public is - no big revelation here - terrorism. However, the numbers, in terms of fatalities, show CFIT (controlled flight into terrain) and loss of control as the two largest causes of death during accidents (terrorism, even with 911 accounted for, still ranks near the bottom).
Many people have simply thrown in the towel on flying.
Our economy depends on a large part to keeping our fleet flying, if we don't the terrorists have won.
With many people, myself included, the lack of desire to fly has nothing to do with fear. First high prices and then all the stupid and worthless "security", and most especially the extra time involved, have induced many to drive instead, even with the higher gasoline prices. If your flight is an hour, with it taking another hour at each end to get to/from the airport, adding another hour or 2 means that a 4 or 5 hour drive becomes just as about quick, not to mention a whole lot cheaper, and you have your own car to drive when you get to your destination.