CO's competition from TOL isn't any other carrier, it's the Ohio Turnpike. From downtown Toledo you can be in the CLE parking lot in under 1:45. Call it 2:00 from Sylvania, and Perrysburg is only 1:30 or so. I predict this service will eventually fail for the same reasons that COEX did in 2001: inadequate frequency, lousy timing, general dislike of 1900's, and the highway proximity. The market needs to produce 35-40 daily PAX to be profitable. Granted, CO isn't maintaining a station here, but the ground service still has a cost.
Unless there is some other motivating factor, most folks will continue to drive to CLE as they do now. With 3 daily services the timing is bound to be lousy for half the pax connecting in the other 3 banks. Although the flight is only 30 minutes, the 1900 is still uncomfortable by modern standards, especially when flown down in the bumps at 6000 feet as will be done on this run. With the minimum 60 minutes required for check-in and security plus connection time in CLE you can drive faster in many cases.
Then again, you can make all the same arguments against the NW Airlink service to DTW, and it's up to 6 or 7 flights a day last I looked. I think CO could do well with 4 or 5 flights to improve the connections, with the aim of rebulding their presence in TOL. If successful look for ERJ service to EWR or IAH in a year or two.