I think the £1 deals were always a little bit all show and no trousers because, at the time, the headline fares did not have to include taxes and fees. I would argue, particularly with Ryanair, that fares nowadays are just as good value. When you consider that many places in Europe can be reached with Ryanair from £35 return (given the right booking conditions) and then factor in inflation, it could even be argued that they are better value now than they have ever been - particularly as they have been forced to comply with compensation payments (which they did not provide during the £1 days) and have vastly improved their customer service.
When it come to Jet2, I find it somewhat farcical that they still bang on about friendly low fares when it is cheaper to fly from LGW to AGP return with British Airways (including bags) than it is to fly LBA - AGP return with Jet2 without bags. When you consider that the BA product offers better on board facilities, including free food and drink and better seating, it just shows how far off track Jet2 have gone. As for the price vs demand argument, I'm sure London - Malaga is one of the busiest routes in Europe. Nothing stacks up.
That said, the package element is reasonably priced and, a few dodgy hotels aside, is better than that offered by Thomson and Thomas Cook.
