It would be nice to think that Luton gets new services due to its own merits and not just because airlines can’t get into a London BAA airport.
LTNman - you're absolutely right but unfortunately, the Government-backed cross-subsidising monopoly that's BAA has created such an industry mindset over the last 15 years that it'll take as long again to change perceptions. London City has only managed to succeed because it offers a niche product including a London business location that BAA would die for!!
The new facilities at Luton are indeed impressive, given the limitations of the existing site, but the likelihood of the present expanded terminal expanding further is slim. If LTN is enabled to move towards its aspirations (which broadly speaking, accord with the Government's White Paper) then in 12 to 15 years time, the existing facilities i.e. aprons and terminal, will be to Luton as was 'London Airport North' to Heathrow in the 1970s and 1980s.
Meantime, as an interim further improvement, what would make Luton considerably more customer-friendly would be a wider approach road with a smaller roundabout in the Central Terminal Area, linked to full dual carriageways from M1 Junction 10A and from the A505 at Stopsley to the northeast of the Airport.
Whilst improvements to the the roundabout fall firmly within LLAO's remit, the rest is down to a combination of Luton Borough Council, Bedfordshire County Council and the DfT - which going on past performance, means that oil will have run out and hydrogen-cell power taken over, before anyone does anything...