I don't mind paying for hold luggage when I need it, and usually pay for at least one case between DP and I unless only a weekend break. Much more relaxed, waiting for baggage rarely takes that long at the other end and there's an advantage in that you don't need to worry about liquids or lug a wheelie case around the airport or fight for the limited locker space. If you buy suncream etc abroad, it's likely to cost most of the savings made by not taking hold luggage.
Some of us don't really have the choice to use 'normal airlines' anyway, for those of those breezily saying 'oh don't fly budget if you don't like how they do things, BA isn't always more expensive anyway'. If you want shorthaul to holiday destinations from Northern England, there's little choice except Jet2, Ryanair or Easyjet.
OP, yes look at jet2, especially for beach holiday destinations. A lot of people will be on jet2holidays packages, which includes hold luggage as standard. One we went on in the last couple of years had lockers about a third full, despite a full flight, because most people just brought a small bag for the flight and put most of their stuff in the hold.
I'm another one who needs the space for my feet under the seat in front of me so I don't want to put my rucksack there. I'm not going all the way to Cyprus with no leg room because someone else is taking the piss with the cabin luggage rules.
If they included the price of hold luggage in the ticket, we would all pay more whether or not we needed it. What about people going somewhere for the day (I've flown to the Isle of Man or Dublin for the day for work several times) or a weekend?
Why should they pay for hold luggage when they only need a small bag, not even a wheelie case?
But realistically, airlines must be losing money on some tickets. I've been to the Canaries for £30 return hand luggage only. Appararently there's £26 taxes on that flight, leaving £4 for the actual flight - I can't even get a return bus ticket to the closest town to my house for that.
I don't usually pay for allocated seats or buy anything on the plane - I take food with me and buy water in the airport or do without. No way did Ryanair make a profit from me from that flight. Of course they would have done from others on the flight who paid more, took hold luggage, chose their seat, bought food, drink, perfume and scratchcards while they were there.
On another flight the couple next to me had two G&Ts each and bought 2 bottles of spirits and perfume/aftershave. They must have spent well over £100 