Audio/Video conferencing or Air Miles

It's all well and good having all this kit to get executives to sit round a tables and hold a video conference, if it really works why are all the business lounges full at airports and 1st and business class seats the real "earner" for the airlines. Maybe it's a corporate conspiracy from the big guys to make it look like they're trying to be greener ( good for the shareholders bubbly at the AGM, to coin a phrase). In reality the sooner they can kick off thier shoes off in the lounges or lie back in the plush airline seats, the better they feel.
This type of kit is really very good for business and a very effective form of communication, has anyone used conferencing kit? and how did it work for you ?
Shimon