I also thought the premium economy was a complete joke domestically - same seats (with a slightly moved arm rest) and what would people actually eat and drink, $30 of junky food and drink and for this VB was expecting people to pay 3 - 4x the cost of a Saver fare for a short flight?
That is true, but priority checkin, priority security, priority boarding, Lounge access and not to mention full fare flexibility (including a "full" refund on cancellation, which isn't something you get even on a Flexi fare) also have value, for some more than others.
Of course those benefits can be had by status pax travelling on a Saver fare too, so perhaps my point is not that strong!