It is clear you just aren't representative of the bulk of the US market.
I think I admit that when I say that for some reason Americans are willing to accept shitty service.
Meanwhile, you should realize your view on this differs from the majority of US customers
I realize that the majority of US customers suffer from a form of Stockholm Syndrome that they confuse with brand loyalty. I think you're one of them.
I would hesitate before asserting that I am wrong about US customers wanting airlines to overbook
I'm just trying to suggest that if people knew what they were missing, they would demand better service. The only reason you might be right about your assertion is if people think that's the way it has to be. It doesn't have to be that way, but it stays that way because people don't demand a change in their relationships with service companies. Again, airlines aren't the only ones who get away with treating their customers unfairly. And, again, major industries like these simply don't have an actor which treats their customers substantially better, so people don't even have an opportunity to choose that company and vote with their wallet.
especially since every airline does it
That's simply not true, not even among major domestic carriers. JetBlue, for example, doesn't overbook. People still get bumped if flights get canceled or things change, but they don't overbook. Even so, if you told me that everyone beats their wife that doesn't mean I'm going to go home and beat my wife, or that I should beat my wife, or that my wife wants me to beat her.
innovation in the US airline industry is almost exclusively focused on price
You have correctly identified the root cause of the problem. I'm glad that you're understanding what I'm saying.