I think if you were to assume an 8 x daily LCY-AMS service, with a Saab 2000 based at each end of the route working against each other, you might be rather closer to the plan. There is no sign of Eastern taking on IOM-LCY. The move onto AMS-LCY looks like a last-ditch effort to irritate someone sufficiently so that they buy Eastern.
Flybe seem hell-bent on crushing Eastern and so the prospect of them buying it is remote. If you look at the most recent set of Eastern accounts, they made a profit of £4m and £2.4m of that was paid out in dividends to the directors. This resulted in Eastern having less cash in the bank at the end of its financial year than before, reducing from £2.6m to £1.4m in the bank. To say that this is extravagant in relation to the size of the company would be an understatement akin to saying that Abraham Lincoln didn't enjoy his trip to the theatre.