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The aim though should be to maximise the revenue not the passenger numbers (i.e. 50 people at 20 euro is better than 100 people at 5 euro).
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No, it is the opposite. The aim is to maximise passengers, not revenue. Get people off the roads and onto trains. Helps improve all our lives.
To me it all comes back to ease of use. The public transport system has to be easy to use. If I get off the DART and 17:00 and decide I want to go visit a friend in Dundalk, I should be able to get the lowest price there and then. Not messing around making bookings, searching for fares. And I don't agree that we can't have enough capacity to give everyone (or almost everyone) a seat at peak times. So what if we have over capacity. It really is worth the extra cost.
I also think that off-peak demand can be stimulated by simply providing more services!!! Afternoon and late evening services are appalling on most lines.. no wonder everyone tries to travel at peak time!