Tweentown:
I think you being a little hard on Monarch and FlyBe. Both have stepped into the breach, and neither had planned to do so when their S12 season was being put together. Given that Monarch could hardly have located a handful of shiny new A320s at the drop of a hat, what exactly were they supposed to do (at either EMA or BHX). Sure at BHX Monarch's aim would have been to stifle any new player (such as Jet2 or EZY) muscling in on their territory when Baby's closure was announced.
Moving into EMA seems far less defensive, since Jet 2 are already ensconced and will for sure give them a run for their money.
So far as FlyBe are concerned they would surely have wished to move in on the domestics and AMS / CDG sooner, but if they don't have the equipment free what could they be expected to do.
It has to be said that Baby were losing money hand over fist, probably because they were carrying too many passengers for too little revenue, and some of the "secondary" routes are probably not really viable and as you suggest, and may be lost.
Running an airline is supposed to be about turning a profit, not putting bums on seats irrespective of the costs.