Flybe is apparently denying the rumour (although, before it's officially announced, it's a case of "they would, wouldn't they").
However, I'm troubled about Flybe passengers; the shock of moving from 146s to 319s might be too much (although the 154 seat config will compensate a bit). It just won't be the same, flying Flybe and being able to use one's elbows.
I'm not holding my breath on this; there have been so many rumours in the past, but I do hope it's true. It's really past time that they got rid of those
146s.
With rumours also circulating about a Flybe/bmibaby merger, there might be some sense in this; bmibaby will need a 737 replacement at some stage and with parent (still?) company operating 319s already, the microbus is probably a good bet for baby too.