There are 3 reasons why they would be released on bail that I can think of:
1. The UK police are really retarded.
2. No explosives were found and the whole event was blown out of proportion or misinterpreted.
3. They are British operatives who were supposed to carry out a false flag attack but failed because of their own incompetence and the flash: s of the public.
Notice how all the men are military age, physically well trained (they're all clearly doing well) and clean shaven? Consistent with a military squad.