3rd rail is 100mph max in service. A Diesel version of the 385 (which is AT200 family rather than the AT300 80Xs) would seem to fit the bill perfectly for a regional service like this.
Not so much a diesel version, but a bi-mode (with dual voltage capability. And if going for 3car or 4car keeping the gangways makes sense.
Probably best to design them for 110mph (or 175km/h) max, although 100mph on third rail, and 95mph on diesel is probably ok for current limits. I wouldn’t rule out 105mph on SWML in future as 5% improvement with modern technology seems reasonable future proofing.
I am with others that although the 159 fleet could continue for few more years, there is logic in replacing them (and Cardiff-Portsmouth fleet) so existing trains can take over from aging 150s and 155s around the network, until some areas get pure electric units.
I think the era of allowing diesel trains to do long mileages over electric lines into polluted cities is ending, and it is basically a 100 mile trip Worting Junction - Waterloo - Worting Junction. (For same reasons I think the 220s on cross country will not stay on current routes for many more years)