I can think of lots of individual routes that might be suitable for VLM, but I'm struggling to pull them together into a coherent profitable strategy which involves VLM having a small number of bases instead of aircraft and staff spread thinly in lots of different places.
Am I perhaps being a little too closed minded in my opinion on VLM ?
I don't think you are. A lack of strategy is the main factor causing them trouble right now and making them lose money. From what I know, they are quite literally running out of money and need to make their new base at FDH a clear success to recover from the situation they're in. So don't expect them to open up any new routes until FDH has proven itself.