Yep...Island Air backed out of the EAS stuff on the mainland because they felt they couldn't get it up and running as quickly as needed.
Personally, I think it's better for WP to focus on Hawaii right now. After having worked there for four years on the ramp in HNL, I know they still have some operational issues to sort out. Right now they are flying five lines per day with five Dash 8-100s. With no spare EVER, you're only asking for trouble. I can recall countless times when this situation has bit the company in it's rear. Inter-island flying is pretty rough on planes (they do upwards of 16 legs/day), and those Dash 8s love to break down at the worst times.