Interesting as ever, MV!
The big hole down which all this falls is the seat costs. It is MUCH easier to charge lower fares with a big aircraft than with a small one - which is why the A380 looks so good on paper (assuming you can get one!)
flybe's problem is that they have got around the problem of using smaller aircraft by using a lot of cheaper to run turboprops. Which are great on shorter, thinner routes, but the public want a jet.
My fear is that flybe will cherry pick some of the short routes out of CWL, throw a D-8 on them at reasonable fares (with more business like fares on CDG and BRU) and this could damage baby - and with the best will in the world, you won't get many takers for a D-8 to AGP when there is a 319 going from BRS....
A1234 - MUC was a political decision, look who owns baby. Milan was the wrong end of Italy and shows how bad some market research can be! GLA is not a fun route for 600 seats a day, neither is CDG. Let flybe have them, but beware what it will do to existing and possible tenants at CWL. As regards "it is only flybe" - think outside the box!