If that's what really happened at Cottesmore, then it just illustrates that inter-service childishness still persists. If so, then I agree it's another reason why a show is never going to happen at Cottesmore. One would have thought that by now the armed forces could operate together and stop acting like school kids.
I agree it would be a sad move if the RAF simply threw its weight (such as it is) behind RIAT. That show is already far from popular with a lot of aviation enthusiasts, plus it's in a lousy location unless one happens to live in the region. Having said that, I would think it's the most likely outcome, sadly.