I asked my wife, who happens to be a primary school teacher in a deprived area, about this. Her response was that the vast majority of parents would recognise that taking your child out of school in term time would affect their child's education (playing catch up?). On the other side of the coin how unscrupulous it is of holiday and travel companies to ensure that their highest rates are always during school holiday periods - perhaps they need to be punished for blatant profiteering.
That's good to hear!
Regarding the profiteering, that's just the 'free market'. The solution, as someone said, may be to let schools arrange their term times and holiday times on an individual basis. Cheers.