Why would 2-3 LCY flights be better than LHR except in terms of plane spotting? LHR has much better connections than LCY which is not set up at all for that.
It's a small-ish market, remember EZY has come onto LGW-NCL which would badly squeeze any LCY-NCL with capacity at a lower cost.
As for IOM going to BE, well the second BA Saab 2000 didn't get the full Union Flag colours unlike the first....