Jersey/Guernsey/Exeter/Newquay get exposure to some fairly awful weather. flyBE have experience operating into LCY with its steep approach, shortish runway and windshear. I'd say the Q400 would operate no problem up there and neither would flyBE.
The six month performance of Loganair may have improved but over the last several years have been fairly poor.
In terms of the bags, if it gives people the option of nipping home for the weekend on the cheap then I can imagine them being all for it.