Can't see Knock suffering too much from this as long as the current government are in power at least. We'll have to see the full details of what's on offer for Shannon but they'll have to restructure in a big way to be able to match Knock's low cost base.
O'Leary couldn't make most of his routes work from Shannon before - he kept the profitable ones going there - I don't see what is changing at the moment to make the others viable now. If Shannon were to give him what he was asking for previously to maintain the multi aircraft base with their existing overheads then they are quite simply too stupid to be allowed to run an airport.