Scottish Flyer,
I think the point you make is a good one. The reduction to one flight per day would have lost those wanting to make a daytrip, and the ATR might be the right size for the route, particularly bearing in mind your personal observations of loads.
Obviously price will be a factor but baby's marketing and ease of booking should be better than Air Wales's.
I now wonder whether the baby CWL-JER, which has been reduced to Sundays only, will now re-appear as a daily flight on Air Wales equipment. Air Wales's owner has said they are to announce their summer schedules soon. The flight could also take in Guernsey I suppose.