I can just imagine the reaction to the Welsh government setting up their own airline! It would not be pretty!
As for the loans given to CWL the money is to be used on important things like runway resurfacing, new security scanners and upgrading the ILS system to CAT2 and no doubt continued investment in the terminal and some is set aside for route development as well I believe.
It may take a while but I'm sure eventually most of the ex Flybe routes will be regained.