What's wrong with pushing the "Scottish-ness" of a Scottish airline? Scotland (plus Wales and Ireland to a slightly lesser extent) have very strong national identities, far stronger than England (do we HAVE a national identity?). People across the world recognise them. If there's a "hook" you can use to sell a product, then I'd say use it. If Air-Scotland don't, then what sets them apart in the minds of those who fly with them? Why even bother naming yourself "Air Scotland"? Just do what everyone else is doing and pick a "something dot somewhere" name. Low-cost "service" is much of a muchness really - I would use every ploy I could think to make my operation different to the next guy's.
If Air Scotland has long-haul ambitions, then surely the same applies, but even more so. As BROWNSTAR said, BCal went a long way on its Scottish roots, people loved it - especially our cousins over the Atlantic, many of whom are proud of whatever Scottish heritage they can lay claim to. Okay, so Air Scotland's operation isn't BCal, but they can still benefit the same way.
Dan-Air did okay by pushing the "Scottish-ness" on its LGW-INV services. The staff at Inverness, and the "local" touches they gave to the flights made a huge difference to the passengers (see the book "The Spirit of Dan-Air"). The folk of Inverness came to regard the route and staff as their own "mini-airline".
I would think Scotland will do its best to support a Scottish airline so long as they buy into it BEING a Scottish airline. You can rebrand all you want, but no-one really sees Scot Airways either a Scottish airline or "the airline for Scotland".
Scotland is desperately short of "national" operators - right now scheduled services are limited to Loganair (a legend in Scottish aviation but once the red and black livery went, it was never the same), Scot Airways (an English airline no matter what badge you put on the aircraft) and Highland Airways (doing well it would seem but not a big power in the scheduled market) and... err, that's about your lot really. And enter stage left FlyGlobespan - who I wish all the luck in the world to, more companies need to "take a chance" in Scotland.
For my money, Air Scotland is a welcome addition to the Scottish market. And if they want to "big-up" their Scottish background by selling me Irn-Bru and Tunnucks biccies onboard, that's fine! The Tunnucks would be more enjoyable than some of the rubbish you get anyway!!
Just one thing, Air Scotland - PLEASE don't overlook Aberdeen!
(From an Englishman happily exiled in Scotland!)
[Editted for typos!!]