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The airlines have created their own problem. By charging extra for hold luggage it incentivizes people getting as much into the cabin as possible.
Reverse it. Make hold luggage free (because it's the one that's actually better for the airline) and charge for cabin luggage that's beyond small light bags.
It'll also reduce the load on security.
Counter:
Carry-ons can be objectively better for passengers.
Carry-ons are cheaper for airlines.
2b could be mitigated by checking only carry-on-sized luggage; basically a smaller luggage-size limit.
I traveled for business for years, and got used to traveling only in a carry-on. My GRo (the best luggage ever built, and which you can no longer but) always fit into a single overhead space. I could pack underwear and several business shirts, toiletries, a pair of (compressable) casual shores, and wear my suit, and still have room left for a pair of jeans. It was a stretch to go for two work weeks, but I could do it. One week was no inconvenience at all. Now even when I travel for pleasure, unless it's a two week vacation I still only pack a carry-on.
That said: I'm a man, and women in corporate environments - unfairly - often feel obligated to pack more clothes: multiple pairs of shoes, multiple outfits, more cosmetics, etc. It is generally easier for a man to stretch a suit by altering only shirts and ties. Even so, my wife will also pack only a carry-on if the trip is 5-days or less. Even though the company pays for baggage fees, it's a worse customer experience at both ends of the trip to check a bag, and I don't think there's much airlines could do about that. It's a straightforward logistical problem.
Except for long, or specialty, trips (e.g, skiing, backpacking), carry-ons for us are subjectively, but uncontestedly, superior. Airlines reversing the fee schedule would be categorically worse for us, enough that we'd switch our frequent flier programs over it.
That's not a counter. If carry one have more value to the consumer, that's what you charge for.
Not when they're running out of space and putting things in the hold anyway. Also I doubt they like always flying with a 90% empty hold. If no hold baggage was guaranteed then the plane could carry cargo and make money that way. Or have a smaller more fuel efficient plane.
To add to this, carry-ons dramatically slow the boarding process, which adds to the overall cost of the flight. Charging for carry-ons makes it easier for flights to be consistently on-time, which is why airlines prefer to have fewer of them
Turning an airplane around is not a quick process, and anything that can be done to speed that it up saves the airline time and money.
Sure they would if they knew it in advance. They could sell that as cargo space.
I didn't know about this GRO luggage. It seems amazing
It is amazing. They shut down during COVID, just before I decided to buy their checked bag. I don't know how good the large one was, but there carry-on is fantastic. The only thing I'd change about it is that it has one of those built in battery ports, which I've never used in my life and is IMHO wasted space; but it was a big trend back when they designed it, and before airports and airlines started putting charging ports in everywhere.
https://trekbible.com/g-ro-luggage-review/
A random, but fairly comprehensive, ad-disguised-as-review.