I live in New Zealand. Air NZ has only four fares on domestic flights: Seat only, Seat+bag, Seat+bag and the ability to change flights, Seat+bag fully refundable. I’ve got no problem with the seat-only fare. If I’m going on a weekend trip, I don’t need to check a bag; my carry-on will provide enough space for my stuff. If my wife and I were going on a one-week trip, we might buy one seat-only ticket and one seat+bag ticket. Simple enough; you have the choice. The important thing is that you know about the different choices ahead of time.