I will pay a BIT extra for this and the freebies are a bonus
Like me, you're not the target market then. You'd probably be happy to pay less for FC in lieu of the freebies, as you just want more room.
For it to work, the service offering is the bit that entices people to travel and pay the anytime fare (not a cheap advanced ticket, or a promotional ticket deal) and that needs to be of a sufficient standard. Otherwise, those that can put up with standard will, and save the money.
BTW, if Intercity services can have times where standard is rammed and there are loads of seats in first class, why not have one carriage that is declassified on certain trips - and fill them with standard class ticket holders. Don't offer anything (even make the Wi-Fi switchable so it's not free) in that coach. It wouldn't even be that hard to have illuminated signs to signify when a coach is not first class.
For all the money spent on the new EC service (not that I'm saying that's money badly spent and I'm sure they may get it 100% perfect one day), it wouldn't have been impossible to do. Some TOCs do that already don't they?
Likewise, at weekends, consider dropping the price of Weekend First and fill up the seats. When we upgraded for £25 each on EC on a Sunday, there was perhaps another 4 or 5 people in the carriage. Or, think of innovative deals - like booking xx journeys on EC via the EC website gets you a free weekend first upgrade to use within 3 months. Don't make people have to spend hundreds and hundreds; even offer it on advance tickets. Say, one weekend first voucher for any 10 trips. Use some initiative. Perhaps when someone upgrades, they'll do it again.
It's risky to hope that you'll get more people to buy first class tickets (especially open ones) in a recession - especially at off-peak times - even if there are some professions that are recession-proof.