In probability every bit of speculation on this thread is true or has some basis. However, I don't believe any actual decisions have yet been taken. That will depend on how well the next 12-18 months go. Moving the RJs to EDI makes a lot of sense for both possible scenarios. LCY is a winner for BA be it BACON or mainline. The EDI base keeps it subtly out of the firing line of the "There is only one London Airport" wing of BA management and Unions. By making BHX, SOU and BRS single type bases costs are lowered.
Now I can't believe that DE and his mob have thought this up and pushed it through. BACON has come from WW and it's the way he sees BA short haul going. Where better to try it out. Take a company that isn't working anyway and give it a shot. If it doesn't work well then you were going to sell it or close it anyway ! Now if BACON works (and it might lets not be completely negative here!) WW will have a low fares (lets not kid ourselves about low cost !) airline within the BA group. He may be tempted to introduce the Connect product at LGW and on some of the less profitable LHR short haul routes and probably the shuttle. It's only what he's done before. Where that leaves the actual BA Connect company I'm not sure but it would have a stronger position to ask for investment in it's business.
Now if BACON doesn't work then the LCY work is nicely placed in one base with one set of pilots and CC who can be eased quietly into mainline. Imagine the fuss if BHX was split down the middle with half the crew getting mainline contracts and the other half cut adrift. With the RJs gone there won't be that type of tension and the EDI base will be all for it ! EDI 145s will move to BHX.
You can then sell what is left bit by bit. BRS & SOU to Air Southwest (Welcome to Brymon), MAN 145s and D8s to Eastern (Welcome to BRAL) with BA Connect maybe soldiering on at BHX until someone wants it or all the leases run out.
Either way BA don't lose. What we musn't forget is that I genuinely believe no final decisons have yet been made. The future is still up for grabs. As an employee I just wish we had more agressive management where it counted, fighting the competition and not their own staff !