Bombardier is now looking to work with Sukhoi and its RRJ. This news is certainly good for Embraer, since it looks like its 170-195 series will have the market to itself; the C series is the second potential major competitor (the first being the Dornier 728/928 series) to have dropped out of the market.
Bombardier is, however, going to look at a stretch of the CRJ-900 series.
The proposed 130 (of the C series) seater was going up against a pretty crowded market, even though it was larger than the EMB-195. The 130 seat market is still in the 737/320 zone; it would have faced quite a herculean task to gain a foothold there.