I fear easyJet could be easily wrong footed by Ryanair, who seem now to be on the right track. Ryanair have been talking up 500+ aircraft in 10 years (with easyJet in the 300's), new business/family options, allocated seating and network changes to be more 'business friendly' are all encroaching on the EZY advantage.
Regarding legacy short haul, both AF/KL and LH are launching lower cost offshoots, and it should be more of a level playing field. FR with a lower cost base, competing on the same (or if not similar routes), with more aircraft could possibly stifle both markets.