There is a niche for the bottom end. Yes the legacies could fight for it, Or they could make more money charging more and turn a profit while letting the problem children fly on Frontier.
I had a friend flying to LAS a few months ago on NK it was a five hour flight I told him "if its just $40 go for the big seat" he said "I just want to get the cheapest ticket possible"
That is a lot of people, there is a lot of overlap between F9 and NK so far as I know the only city we serve exclusively is TTN (unless you count the AA bus)
No one know what will happen in the future but in my life experience when you lose a direct competitor you get a boost. The real question is will F9 get traction on this or will it be flooding in drought plagued California?
My condolences to our fellow pilots at NK. May the bridges burning behind you light your way forward.