Yes, some people will pay those fares because they want the shortest journey time possible, but then again frequency is not on Eastern's side. People want choice and flexibility: this is for IOM-BHD -
Eastern - £198 return - 1 daily flight (0hr40)
Flybe - £130 return - 6 daily flights (2hr30)
Clearly the only thing that Eastern have on their side is the flight time, and not everyone cares how long it takes to get from A to B, especially if it means that they can return on the same day as departure, saving the need to pay for a hotel room; or can arrive at their destination on time for that 10am meeting.
I would hope that Eastern are testing the waters and are planning on introducing a second daily flight to both destinations, and consequently fares may fall, but as it stands, Eastern are pricing themselves out of the leisure market and the budget business market.