The DH contract to LPL was tendered some months ago, but as far as I know, an award is still awaited. BE are continuing to provide the service in the interim.
Yes, just like you HAC, I am a very regular traveller to London, and over the last 4/5 years, I feel I've generally had a very good service and (by planning ahead) good value from BE. However, I have several round trips with EZY in the diary between now and Easter, even changing the pattern of my travel, simply because it was so cheap. So, although I'm very uncomfortable about where all this is leading for the IOM, money talks. I suspect I won't be alone.
BE will know they can do very little to make life difficult for EZY directly, so, as I said previously, I am sure that BE's tactic is scrapping those morning flights is designed to fire a shot across the bows of the airport management and politicians, for gambling with the future stability of services. An interesting period lies ahead.