Airlines have a large fixed cost and a small marginal cost for each passenger on a plane. If they charge $250 for each seat and half the seats are empty then they are wasting capacity and have to charge enough for each seat such that half the seats pay for an entire flight. If they can fill the second half of the plane with $50 passengers then they are providing more service (a social good!) and can perhaps reduce the expensive tickets to $200.
Of course everyone wants the $50 tickets, so the market gets all weird trying to both fill flights and charge as much as possible, while being competitive with other airlines that are trying to do the same thing. Because there are competing airlines, the final margins stay low, so the airlines are barely "maximizing" profits so much as they are simply maintaining profitability.
I have no problem with dynamic pricing. Many companies in different industries do that, even if they do not have the large fixed / small marginal cost model. That is just business.
But once the company starts defining "worthy of cheap tickets" groups the system becomes very murky; and murky systems impose costs on everyone.
So why don't they just offer prices (EDIT: starting prices) at $150 instead. Then the plane won't be half full but perhaps 90%. The price for those last 10% of seats can go up or down 1. depending on the demand for that flight and 2. how much time is left.