There are certainly interesting times ahead in the low fares market and there are bound to be a few casualties before too long.
As far as I'm concerned the low fares market will develop similarly to that of the USA. Ryanair (equivalent to Southwest) will continue to be the market leader due to its low cost base and the lowest fares. Competitors going for the business end of the market such as German Wings and HLX (equivalent to JetBlue) will not all survive but as far as who the casualties will be remains to be seen.
I predict that only 1 or 2 of the CGN based low fares airlines will survive.