First class is dying anyway - businesses and passengers are looking to cut down unnecessary spending after the pandemic/inflation and business travel is down relative to the other areas of demand.
Lots of first class carriages were almost empty pre-pandemic, now even more so.
That said - the gulf between standard and 1st is extraordinary. Prices should probably be cheaper, but then probably have to reflect the ~20%-ish reduction in capacity and extra service requirements at least.
Still, looks like generally 1st class seating is being reduced, which is good as it means fitting in more passengers overall.
The conversation I had was some time ago and much has indeed changed since then. The price differential for first is too great and for an hourly service not popular. It might be more attractive for a reliable half hourly service with a seat. Catering doesn't work well when the train is so crowded the trolley can't easily get aboard a busy train, let alone work through it.
One problem we haven't resolved is how to distribute loads throughout a train. I have early memories of boarding very long ECML trains at York for Newcastle and walking forward to find empty compartments at the front, the section nearest the bridge being full.
I've watched loading of EMR, TPE and Northern trains at Sheffield for Manchester. 6 coach TPE 185s and 4 coach Northern 150/6s and that walk through option isn't fully available. On EMRs 156/8s it is, however the issue remains. Passengers pile into the first coaches they see and don't walk forward.
Yesterday I saw a 4 car Northern with empty first carriage and rear full and standing. It happens every day across the network so impressions of how busy trains are can vary greatly even on the same train. At Sheffield platform staff do sometimes try to encourage better distribution.
Passenger satisfaction is greatest when seating capacity is less than 50% utilised thus allowing a choice of empty available seats. ToC and DfT are happiest at 100%.
Currently a railway organised predominantly around fairly predictable commuting and business patterns is struggling to readjust. I've only travelled first class at greatly reduced weekend rates. When the fare is 50-100% more expensive than standard it's not an option for most.