I think a market still does remain, afterall Manx2 where never heard of to be honest in most parts of Ireland & the U.K. until the crash - if Flybe did start the route they have a big brand name and certinaly would attract triple the pax usage on the route even if it was only a daily return service...
Also on another note the planned Manx2 resumption of GWY-ORK-GWY for Summer 11 (June to Sept) has been axed too.