Scot stays independent and wil be doing charter and wet-lease work in parallel to the Cityjet flying. Some of the Scot aircraft will be painted in Cityjet colours (first one was at LCY yesterday), others will stay in Scot colours (for charters etc).
The Scot cabin crew (at least on the Cityjet flights) will wear Cityjet uniform. Scot are providing ACMI services to Cityjet: Aircraft, Crew, Maintenance, Insurance - so this suggests that Scot will still be responsible for hiring their own crew.
The Cityjet deal is good news for Scot IMHO - they were reportedly finding it hard to compete with BA, flyBE etc and this now gives them some security, at the price of no longer doing scheduled operations in their own name.
Your friend at their SOU base was quite right that their SOU base wasn't going to last - but I notice that they are still looking for cabin crew on their website for their other operations.