I actually like the idea as is. Who needs a flight every hour of the day? I know we are going for convenience here, but it has gotten a bit ridiculous.
Truth of the matter is, if they regulated them in a manner like this it wouldn't change the number of people that fly. If the customers don't like it hand them a ticket to the AVIS rent a car. We want customer service, but not at the expense of the industry and its employees.
If it lessens traffic load, reduces fuel burned/operating costs, and relieves strain on the industry through consolidation at the cost of say a flight every 2 to 3 hours to the same place, instead of each hour. I personally think that is worth it. It will never happen I am sure, but it seems like a brilliant idea IMO.