Gulf Air is taking steps to make itself viable within it's available market. Bahrain does not have an inexhaustible supple of money like the UAE, Qatar and to a lesser extent, The Oman, so it cannot compete and has to make the best of it's current situation.
I can remember when Gulf Aviation, as it was then, was run by Alan Bodger and had the monopoly all around the Gulf, now, facing stiff competition from much richer neighbours, they are having to cut their cloth according to their means.
Bahrain itself is not a final tourist destination but if sensible heads got together it could form part of a Gulf tour with a visit to Iski in the Oman, possibly Jebel Akdhar as well, some gambling in Dubai, Al Alain and so on.
If your idea of a holiday is all about clubs and bars then I would agree that the Middle East is not the ideal option but the Gulf does have a lot to offer a tourist with slightly more aesthetic tastes and an interest in history etc. etc. or simply someone who likes the sun!
