I flew British Midland once between GLA-LHR and back and they seemed quite good. The service was quick and friendly and the seats comfortable. And all the flight attendants wore hats which seemed to me (as a N. American) as such a throwback to older days of flying and so uncommon these days - but I guess for England women wearing hats is not uncommon - I'll let MF comment

So I also wish British Midland well - I like BA - but any competition that get fares down and does so without completely sacrificing style and service (unlike most US discount airlines) is great with me.