All the times I've flown Ryanair over the last two years they've allowed quite big bags as well as handbags in the cabin, assuming they're able to fit in the overhead lockers. If the flight is busy they will approach people at check in to ask if they'd mind their bag going in the hold free of charge. It is probably about eight months since I last flew though.
This has been my experience too, but I suspect not with this new ruling. I wanted a quick getaway so was hoping to go hand luggage only. I'm also not prepared to leave my camera in the hold.
I fly to Brussels regularly with Ryanair and it's a new policy. Basically people were taking the piss with their hand luggage, so they've started to say you have to book priority to take anything bigger than a laptop bag on board. Plus it was taking that long to get everyone sat down, everyone trying to get their bag in the locker above their seat. This way, most bags now go in the hold free of charge and they get everyone on board quicker. Guess if they flight isn't that full they won't bother too much.