Good point RR but consider that ceral bars and muffins are prepackaged.
Yes, I'm sure that's the engine driving all this, as it eliminates any actual meal service. I agree too that a nice small tea sandwich is welcome on shorter daytime flights as a second service. However these have to be consumed onboard as aren't allowed through customs (beware the dairy/meat/fruit sniffing beagle at Logan).
The value 2nd service is the one that comes after a cramped Y hour or two of sleep when it's really 2:30 a.m. body clock time and 6:30 arrival. Having a bit of time to harness whatever energy can be mustered while having two cups of good tea and a small bite that says "breakfast" to ease the shock to the system, is most welcome, especially for those facing an hour or two of line benders on arrival at LHR customs hall. Would be nice to receive a warm wake-up towel in Y as well....but that was yesteryear.
When I talk VS up to colleagues and friends, I apologize for the dreadful Y seats but am proud to claim that Y pax are still given a full meal and beverage service. If VS go to cheapening the product to look like the competition (hello? can we name all the US carriers who offer a cereal bar as though it is a prize in a basket?) then it's a hard sell to rationalize why anyone should pay a premium price as VS so often is, especially in summer. Additonally, I would be quite miffed to pay PE prices for the same (recalling the "varietal white" wine served in Y and PE last flight that guaranteed no one topped up).
Not saying that a cereal bar versus a light meal would be the yay or nay factor (safety record, on time and fun are big plusses) but it does make a difference in the overall sense of value as it is the last memory pax have on deplaning.
Possibly mentioned in another thread but did anyone have an opp to listen to the what was I think on the NOW show a few weeks ago about VS Upper class--where they did a skit ad on the new VS "working class" fare? The one where they offered seatback pianos instead of video for a singalong down back? Perhaps it wasn't such a stretch.
I'm sure VS have costed this move out as a mega savings effort and best wishes to that, but surely there are ways and there are ways.
Oy, now I sound like a fussy neighbor complaining to the council about plans to remove a row of nasty rhododendrons in front of the library. But still....

back to work,
RR