Been away for a week; I gave up reading this thread when people started making spurious comparisons to breaking bowls and drinking cans; this is a service, not a product, they're priced and consumed differently!
My tuppence on the whole issue: TOCs have some logic behind their pricing which, whilst it might not make much sense on the ground, often has some sense behind it in regards to loading and profit maximization. That said, the complexity of fares and the variety of journeys means that a number of anomalies will crop up - some to the benefit of the customer, some to the benefit of the TOC.
From a more philosophical viewpoint, what people are concerned about is fairness. They expect to receive a service whose value is somehow proportional to the amount that they have paid, and whose cost is proportional to the amount of effort they put in and service they receive. At the moment, the pricing structure does not often deliver this - the OP's case being a good example. That doesn't mean that it
needs reforming, as it clearly offers a reasonable financial return if done properly, but reform might help improve customer/TOC relations and increase fairness. Read Machiavelli's
The Prince: you don't have to be virtuous and good, but it helps to at least seem it!
In an ideal world, if we're to keep a fare system similar to our current one (with advances, off peaks, etc), then I'd like to see more flexibility in how 'fare evaders' (by which I mean anyone with an invalid ticket, intentional, trivial, or serious) are dealt. I think the following three measures would increase a sense of fairness and also ensure that people who try it on pay the full price:
* Ability to claim a refund on penalty fares/full prices fares if absent documentation is produced at a station at a later date (I'm thinking of
this sort of example where the customer forgot a railcard. This could also cover forgotten advance tickets where a customer has the seat reservation etc)
* The TOCs draw up a list of 'minor evasions', which might include travelling short on an advance ticket, travelling incorrectly on a peak service with an off-peak ticket, over travelling by 1 stop, and other situations where a customer has paid but is not technically on the correct ticket. For these, customers would have to pay the cost difference between their existing fare and the appropriate fare plus a £10 or 20% of full priced ticket, whichever is greater, admin fee (this last bit would stop people habitually buying off-peak tickets for peak trains in the hope that they don't get charged). Essentially, this would cover most occasions where passengers have purchased a ticket, unless it has already been used, it out of date or way off route.
* Introduce penalty fares of £50 + the full price fare for the journey nationally for those travelling without tickets at all. And maybe a day in the stocks.