Interesting debate this and I'm going to slightly off topic in my response (SORRY!) before bringing it back to LBA.
I have done a fair bit of domestic flying for work in the past year or so across many different routes. One of the routes I seem to be using more regularly at the moment is BHX - GLA. This route has been a Flybe stronghold for a long time and there are about five departures a day providing reasonable choice. Recently, however, easyJet have also announced the route and, as the flights will be operated by a GLA based aircraft rather than a BHX aircraft (as is the case with Flybe), the flight times are slightly different. Whilst the Northbound times don't really help me that much, the Southbound flight times are absolutely perfect for what I need (ignoring the fact they are also at least 50% cheaper). These additions to the service will mean that I will now be able to plan my work days and travel much more efficiently and having those choices really enhances my life, as well as making it cheaper for me and the company.
I'd also like to directly address anyone who may be reading from the government who thinks we should use trains rather than domestic flights. If your working day in Birmingham finishes at 5pm and you need to get home to the Glasgow region, the first AND ONLY direct train that you are realistically going to catch is at 19:15 which gets to Glasgow at 23:15. You then have to find your way home. Finishing at the same time and catching a flight, there are options at 7pm, 8pm AND 9pm and all arrive in Glasgow well before the train.
To bring this back to LBA, having the choice to fly at a time that is appropriate to your needs is absolutely crucial to the needs of the business users who typically frequent these flights. It's all very good and well saying, "Don't Go," but this isn't an option, the work still needs to be done and all we are doing by reducing the number of flights is increasing the potential cost to the businesses as they have to stump up for things like hotel stays and lost productivity. This is why the Eastern/Flybe partnership will have reverted to 3 flights a day using smaller aircraft rather than 2 flights a day on a larger aircraft (though, for the record, I still don't think the timings are spot on). Having that flexibility will allow businesses to plan their workforce more effectively. I'm sure that, in a number of cases, businesses would even pay for a part flex or fully flex ticket with this in mind which would be of massive interest to the airline. This is not such a good looking option if there are only two flights a day.
For example, just looking at flights between LBA and Southampton, partial flex costs about £40 more with any changes requiring the fare difference to be paid also. That said, the fare difference often isn't much, if anything. This is cheaper than buying a ticket and then having to buy a new ticket if plans change.
So, whilst two flights a day with a larger aircraft on many domestic routes MIGHT be enough in terms of passenger numbers, it is NOT what the customer wants or needs. If the economy and productivity is to be encouraged, the customer should get what they want. The only reason we are in this situation at all is because of how badly Flybe has been managed. There is a fundamentally viable business out there.
Final point: Is anybody really surprised that a consortium including Virgin, having taken over Flybe, is now embroiled in controversy over Flybe's Heathrow slots? Not me. Why else would Virgin have got involved? For the other airlines to now be complaining left, right and centre about the situation is too late. If they wanted to complain, they should have done so at the time of sale, particularly considering the apparently larger (market value) offer that was presented only a few weeks prior. Not that airlines have ever been involved in skullduggery.