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Could a permanently reduced market benefit airlines with smaller planes

  If the Wizz air chief is right in that CoVid19 will lead to a permanently reduced airline passenger market combined with more direct flights and much less hub and spoke, then the LoCo's are going for the wrong aircraft with their demand for more and more seats per aircraft. More direct routes and less demand should mean a market of planes with less seats each to avoid the booking confusion of trice weekly flights instead of daily. After all sample Ryanair made their lo-co start with 130 seat planes, then 186 seat and soon they will be up to 200 and then 220 with an extra cabincrew. Larger planes and still just 2 pilots in them might lower costs per seat but if they have to keep fire-selling the seats could it decrease profit per planeload.