What benefit will electrification bring to the line? Aside from Avanti's service, there will be no benefit to TFW services given the huge order for 197's that are being introduced. Improvements to capacity on the line would be more welcome than electrification.
Given the announcement of electrification to Hull, then a batch of 7-car class 397s for TPE to provide most TPE services (including a Bangor-Hull service replacing the current Llandudno-Manchester which of course is planned to become Bangor-Manchester) could be an option.
Electrification of Cardiff - Swansea would make more sense
There is probably a stronger case for Cardiff-Swansea, but that doesn't necessarily mean it makes more sense as the next electrification scheme for Wales. The reason I say that is that Cardiff-Bridgend (via Pontyclun) is fairly congested and this will only get worse with the new stations planned and hopefully additional services to/from Maesteg. There could therefore be something to be said for doing some other upgrades on this stretch (such as 4-tracking or at least building a 4-track section through the new Miskin station (with platforms on the slow/releif/loop lines only so that fast trains can overtake stoppers there)) before electrification.
Or more importantly, will it actually happen? Or is it just Tory spin?
They might start on it, then cancel/pause/whatever just like HS2 and GWEP.
Electrification from Crewe to Chester and reopening of the line from Menai Bridge to Afon Wen and branches to Llanberis and Bethesda would arguably be more useful than full electrification to Holyhead immediately, in the absence of an electrific fleet to operate TfW services, unless they want to take 379s or 350/2s etc. Additional services to Llanberis, Pwllheli and Machynlleth would provide additional capacity on the main line as far as Bangor.
It didn't sound like any of Sunak's new projects would happen 'immediately' anyway - so even if Holyhead is the aim (and it doesn't get cancelled between now and then) there's plenty of time for other things to happen first. That said, I really think somebody needs to put the idea of reopening the southern part of the line between Menai Bridge and Afon Wen to bed once and for all. Unless the only services on the reopenned line would be Pwllheli-Bangor (possibly continuing to somewhere else in North Wales, such as Llandudno) it just seems a bit pointless. Any service which aims to link Bangor and Machynlleth would be heading in the wrong direction for over 5 miles to join the Cambrian Coast Line about 8 to 9 miles west of Porthmadog (which, it seems to me, is where you would want to be aiming for). If you're going to try and link Bangor and Machynlleth by rail, at least do it properly; forget reopenning Afon Wen and build a new alignment between Bryncir and somewhere around Porthmadog to give the A487 a run for its money.
I'm all for rail to new destinations, but what would be the point of branches to Llanberis and Bethesda? Both would be happy with a decent bus service to Caernarfon / Bangor.
Not sure about Bethesda, but I've heard some horrendous reports of car infestations around Snowdon. Being able to book through rail tickets to Llanberis might help encourage tourists to leave their cars at home. I guess through tickets with the buses, plus maybe some bus priority measures if necessary (not sure whether they get delayed by all the car traffic) might be sufficient.
Caernarfon absolutely, but there's no need to go beyond.
Caernarfon to Machynlleth is still rather a long haul on a bus; yes you could change onto the train at Porthmadog but then that's two bus-rail changes (one at Caernarfon and one at Porthmadog) if coming from Bangor. A train from Bangor to Porthmadog via Afon Wen is pointless in my view because it's unlikely to be faster than the bus, but don't you think a train with a new alignment to Porthmadog coupled with a limited-stop run down the Cambrian Coast (with additional passing loops and maybe some targeted linespeed upgrades) could be quite transformational to the attractiveness of public transport?
Plenty of places 197s would be useful. First job probably to bin off the knackered old 153s kept for the Heart of Wales line and replace with 2-car 197s. Next job to scrap the junk that is the 230 and do the same there.
One of the few things I would have said the 197s are well-suited for in their current form was Wrexham-Bidston, but apparently they are 'slippery' and can't cope well with the stop-start nature of the route (despite the quick acceleration and wide doors otherwise being ideal for services with frequent stops). They really are a worthless type. Send them back to CAF and have them rebuilt as battery EMUs for Northern (or for the south Wales metro, cascading FLIRTs and tram-trains around to provide the tram-trains for more on-street sections)