I agree with the above posts re the costs of Jet vs. Turboprop. I cannot see FlyBE developing in any market where they are in direct competition with the LoCo's flying 737-type equipment. There are, however, a lot of 'niches' out there where a good fast turboprop, with low running costs, is the ideal aircraft.
Some of the stations mentioned previously (GCI, JER, IOM, etc.) are ideal examples. I think the next few years may well see continued development of eJ, RYR, etc. on their 'patch', with FlyBE doing well if it sticks to these smaller markets.
Best of luck to FlyBe with this Q400 fleet.