I understand the strength of feeling that must be prevalent at both Baby and Regional, so its not surprising that some feel the need to lash out. However. a few points to note:
The Sunday Times chappie was probably quite right in his analysis, but of course this would be true for any airline in the regional sector. Whatever happens to one of your competitors will have a direct result on those remaining, that goes without saying. The fact that he reported it as unique to this case goes a long way to describing the sort of inflammatory journalism we see these days.
Flybe will have had absolutely zero do to with whether Baby is sold or not. The truth remains that Lufty couldn't sell it, even when it was positively in their very best interest to do so. BA/IAG inherited it, and as someone else on these forums quite rightly pointed out, are not known for sympathetic business solutions. They will have looked at the best option FOR THEM and put it into action, harsh, but common business practice. Call it a stitch-up if you like but I believe that's a gross over-simplification. I can't even guess what went on behind closed doors, stranger than fiction probably.
This has nothing to do with Regional, that particular scenario is still to play out (as has Baby's), I have no knowledge or insight as to possible outcomes. I see no reason why it could not thrive as a stand alone enterprise.
Anyway, the very best of luck to all involved.