Interesting to note that FR Dublin/Prestwick significantly down (-30%) in March 2011 compared to March 2010, and AerLingus Regional up strongly (+30%). It would seem that the smaller aircraft is a strong weapon against Ryanair's 738s!!!!
Your conclusion is false and not suported by the data.
Ryanair dropped capacity on PIK-DUB so outwith the FR service the market was forced to pay way more to fly on a smaller and slower aircraft with RE. It's not that RE is better, it's more frequent but also slower and more expensive than the A320 it replaced, it's just operating at times when the market needs to travel, something Ryanair are forgetting.
People are not choosing the ATR72 out of choice, they are doing so because FR are shooting themselves in the foot again. I think they are losing the ability to deal well with some of their more mature markets which will have impact as the dash for growth ends. The bit that's missing is whether the drop in capacity means that FR's DUB-PIK is operating at a better profit and the same for RE. Damn commercial confidentiality!