Funny how we have progressed up the Functionality Usability Happiness pyramid as consumers. Check out these two examples:
Command-line versus Graphical:
Command-line shell operations give users power, as we can easily pass data from program to program via pipes. Ncurses and windowing programs are expressly interactive, providing a prettier environment and keyboard/mouse shortcuts to increase usability at the cost of data exchangeability (although Apple's Automator tries to reduce this cost). As long as it's a pain to exchange data, we're trading functionality for usability.
Hormel used to just make mashed meat. Highly functional, somewhat usable, but not too happy (except for fried spam over a campfire). Hormel's earnings are increasing as they now make specialty foods, which are functional, usable, and pretty/happy.
My wicked big conjecture of the day: Consumers take functionality and usability for granted (or are discounting it). We are evaluating options primarily by happiness and/or social impact (me and my friends, not me and starving distant relatives in Darfur).