I do not understand what the problem is with this fear of FR. Even if there are flights for free alot of people just will not fly with them. If EZY were to persist at DUB and grow the product there, the god like status of FR would start to fall away. I think the fact that operators are kept away from DUB out of fear is unhealthy. Dub is like nearly the size of MAN, its not like Prestwick. Is it not illegal within EU law to operate at a loss on routes to push out competition? If it is not illegal DUB airport should take a long hard look at itself and try to reduce the dominance of FR and the low revenue it probably generates by finding ways of breaking down this fear of airlines using the facility. What the people of Dublin really needs if this does not work is another airport!!!
As has been mentioned above, Easyjet (and their predecessor GO) tried to enter the southern market before in better economic times, and both times they lost millions and were driven out by Ryanair. I can't see them trying again, at least not until the economy recovers. Easyjet's problem is that they are virtually a complete unknown in the Republic, whereas Aer Lingus and Ryanair are household names, so when they tried before they had to rely almost entirely on UK passengers to fly with them, while Ryanair and Aer Lingus could attract both Irish and UK passengers.