" It allows retailers to offer a lesser service "because we're so cheap" (E.G. Budget Airlines). "
Depends on what you mean by "lesser service"....
I don't particularly want my nails done when I'm flying for a half hour over to England. I want a safe flight with no delays and that is it.
Same with retailers I want the product cheap but I also expect them to grant me my legal rights in the event of a fault.
I don't expect or need all the bells and whistles of customer service that add more to the cost.