Fair points WWW, but 2 observations:
a significant number of the 60+ million pax would never have gone BA (or similar) in the first place, partly due to different routes, and partly due to the demographics of air travel in the UK being so different now to 10 years ago.
The idea of BA competing with a locost is interesting - a white flag before the ink has dried on the locost press release announcing a route seems to be the usual form!
Where I do think BACON (or its predecessors) missed the boat is the market that Flybe seem to be cornering - the equipment they had 5-6 years ago was well suited to do nicely there, but they seem to have been like rabbits in the headlights of all the other locosts.