Certainly agree with you Fairdealfrank although if it weren't for the demands and prejudices of the market in this particular case then an STN link would make everything begin to work rather neatly (although I am in principle a proponent of the free market but let's not open that can of worms). But was your last sentence referring to Flybe or in fact something else?
If it was referring to Flybe, then looking at LGW's charges and actions lately it is hardly as though they are encouraging them to stay. BE is clearly small fry to GIP - hence they certainly don't incentivise the use DH8s (and the E75s are hardly any better)... whilst Flybe is the third largest holder of LGW slots, you can bet that GIP would far rather those (in general) very valuable and well-timed rights went to users of larger aircraft or better still the international carriers who are knocking on Gatwick's door - whilst it is true that LGW is only about 80% full, it is certainly running at capacity during the morning and evening peaks. If Flybe pulled out (hypothetically... obviously it is rather unlikely) then the routes could be replaced in the main by EZY/BA, who are already in competition on a number of routes (eg. BHD, INV, IOM, NTE, JER). For GIP, to some extent they are therefore a waste of space... so perhaps they won't be playing to Flybe's tune and if the latter won't pay the fees then so be it.