Firstly, The Oracle (and many others) it is "Skywest" with a little w, as its all the one word. SkyWest is an American airline.
Secondly, this operation (as has been stated MANY, many times) is essentially "turn-key" for Virgin. It is a very similar business relationship to Qantas and Cobham. Skywest is probably paid an agreed 'rate' for operating the ATR's, which would include the leasing costs of the aircraft. Virgin probably get to keep the rest on top of that rate. So if they promote the proverbial out of the services and get full ATR's running around the place, then thats how they make their money. Skywest doesn't care if they are flying around 68 or 6 bums on seats. So essentially half of your post is just bunkam.
I do agree however that things will get interesting over in the west now that Sunstate are putting Q400's in. If utilised correctly they will do really well with the long distances between ports in WA. If the economics fit, they would make a killing with some smaller Pilbara mines, if the runway infrastructure is up for it. Shaving 30-40mins of a 3hr flight in a F50 or Q300 would make some of those routes viable to be done in a TP, rather than a jet.
Finally I think some perspective is in order in terms of what has been done with the ATR setup. Skywest has had to put into service 4 brand new to the AOC aircraft serving routes that includes 3 major capital airports, including the most TP unfriendly- Sydney. What are Qantaslink doing in the West? Putting 2 x an established on AOC type into 2 routes in WA. Big deal.