I've said it numerous times, from a business point-of-view, BA long haul needs to be a full-service airline competing globally. Short-haul is just another LoCo. The only thing stopping this is the legacy and unions, but if it doesn't it will die and the Union members will end up in a LoCo anyway, if at all.
Premium short-haul flying will go to the many private charter executive jets, which, with a bit of intelligent systems and marketing, could ensure flights were paid for each way with few dead-legs. The rest of the short-haul flyers will put up with an hour and a half in a narrow seat for £30 each way.