As much as I admire your certainty, and as much as I doubt mine... ATOL covered about 5% of Monarch's business, I understand - being the "package holiday" type stuff. The other 95% has nothing to do with ATOL and won't be paid for by it.
That said, of course the CAA/Government won't pick up the whole tab - they'll claim from insurers and card companies. But it's certainly a relief for passengers that it's the CAA/HMG having that fight instead of them, I'm sure.