They would have to do pretty well to screw it up, this is the one route that has held its own over the years against true LCC competition and I think was one of Air UK's first international services. This one should be seen more as a DUS-East of England rather than just London area. Presumably it would still be sold through AB
Increased frequencies are good, though it's an overall drop in seats of around 34 per day. It would allow better connections to AB's long haul routes.
Having Etihad Regional at STN wouldn't be a bad thing. If you're going to have a small regional player on board you could do worse than it being one backed by one of the world's most financially powerful carriers.