Well, Bush can't really enforce an across the board increase in fares to reduce demand to match the supply (which there is VERY little of), so this increase in bumping fees is a fair means of an effective fare hike.
The airlines won't get together and "decide" to raise fares in order to better match the supply with the demand -- they can't anyway because that would be collusion. The airlines won't voluntarily increase fares to increase their individual supply while still overbooking because they know that the competition will enact what is best for it and thus keep prices just low enough to draw people from the airline that raises prices.
We live in an age where the consumer is apparently king and thus the lower price wins the patronage. Price isn't everything though, and consumers need to be taught that (why else does Target exist vis a vis Wal-mart?).
And besides, the airlines already have this covered by offering multiple levels of prices for the same seat. If the pax wants to avoid that chance of a flat-tire on the way to the airport, then get the fully refundable ticket. Otherwise, go cheap and get the discount fare like most people do and take that real life chance like everyone else in life does with every facet of their life.
The airlines are unique critters in transportation, much like trains. The profit margins are razor thin and every carrier seems a snowstorm away from bankruptcy, yet, air transportation is critical to our national economy. I for one am for a little economic regulation of the airlines. Not so much so that they run inefficiently, but enough to keep the economy lubricated and healthy.