When I first moved to Mid Wales in the late 70's/early 80's it was well known that Oswestry had declined after the railway had left. However back then road projects could be transformational on a scale that could make a difference. The work on the A483/A5 Oswestry Bypass and Chirk Bypass in the mid to late 80's was a massive leap forward in connectivity for the area as journey times northward were substantially slashed to start with at least until the road filled up with twice the traffic it was designed for and 2 miles tailback where the A483 intersects the A55 south of Chester appeared every morning. In 2018 everyone in the area who can afford a car already has one , dualling the A5 will not produce any seismic shift in connectivity unlike what the road did 30 years ago. Whereas in 1988 when you came off the road to access Chester, Wrexham and Shrewsbury etc you could mostly drive straight into them now the queues already out of town so shaving a fee seconds/maybe minutes off journey time to reach queue is somewhat futile. The basic problem is we now have c35 million vehicles on the road compared to c25 million 30 years ago.A little bit of extra road here and there really makes no difference.
Right.... so your approach is spend nothing on roads, lots on rail. Let the roads become completely gridlocked, yet we'll run trains which don't serve the journeys people actually want - because that's effectively what you're saying.
The problem in the UK is road capacity has *never* been increased in line with population increases and indeed in the last 20 years government actively tried to reduce capacity whilst overseeing a population boom led by immigration. The rail network's capacity issues aren't on the branchlines and byways along the England / Wales border - they are on the mainlines into and out of London, Manchester and Birmingham - and reinstating a branch line which serves a town of 17,000 people will make precisely no difference to that.
To be fair HS2 is trying to deal with that - much as I disagree with it as the approach. Though my issues with HS2 are threefold - (i) it means digging up a swathe of central London unnecessarily - terminating it at Old Oak Common or Paddington would be more sensible. (ii) many of the places blighted by it through rural Bucks and Northants will see precisely no benefit from it. (iii) Encouraging growth outside London would be preferable.