The precise cause of the problems hasn't been articulated, but American obviously needs to get this fixed promptly. This is potentially inconveniencing thousands of travelers, and will cost the airline in dollars and goodwill.
Air passengers in Asia are fortunate to see such robust competition where they fly. In North America, almost one-fourth of routes see just two airlines vying for passenger allegiance.
Although a great concept, passengers without seat reservations that purposely board last for the coveted aisle seat could cause more commotion than the extra space is worth.
There should be some accommodation for more ample passengers on flights, and this sounds like a reasonable solution. Should passengers have to pay more for these seats? That's could be a big issue.
On a side note, it is interesting that Richard Branson, only a minority owner in Virgin America because of U.S. regulations, played such a prominent role at the Newark festivities -- and in articulating Virgin America's threat to file an antitrust complaint.