An extreme example of blue sky thinking
Ok, I'll bite.
What about making Hellifield the new Skipton with extended electrification
Yes please

Rather Utopian though.
and a complete new build of the station
Not going to happen given the station's listed status.
adding an island platform to the west of the current station, where the steam trains take on water, and a reintroduction of the southern facing bay suitable for 100m trains.
If the Cliteroe trains are then also extended to Hellifield this gives a vast range of new connections for people living either side of the pennines. Such as Blackburn to Aire valley stations much faster than a change at Leeds.
The construction of this could also coincide with major housing developments in Hellifield (good commute to Leeds, Bradford, Blackburn, Bolton and Manchester) and Gargrave (good commute to Leeds and Bradford).
I think you might be over stating the level of development that will be taking place in Hellifield and Gargrave (i.e. very limited). That said there are already existing markets for commuters to Leeds and many, from both Hellifield and Gargrave, do indeed take the train - it's much quicker than the car. And the cost is pretty reasonable too. There is also a potential market for extending the Clitheroe services - even if it were in the morning and evening peaks (several of my neighbours work in Blackburn and a couple even in Manchester). This wouldn't need a need island platform, or the reopening of the bay at Hellifield. It will, however, require something to be done about the line speed to make it an attractive offer. Hellifield to Clitheroe is painfully slow!
For what it's worth there was talk a while back about making Leeds to Carlisle / Lancaster hourly, with a split at Hellifield or Long Preston to make the most of tight paths down the Aire Valley (I understand this is one of the things stopping a more frequent service). It's a good idea and the demand is sufficient. But as with all things Northern it comes down to the available rolling stock issue. At least the Northern ITT has specified additional services, albeit with a rather long wait!
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It always shocks me to see the Gargrave car park virtually empty.
Why would you drive to the station when it is no more than a 10 minute walk away in both places? There is no real car parking facilities at either station anyway.
Then I look at what passes for a train service and have the answer. Similarly Hellifield. Some of the Carlisle services pass through Gargrave but sit at Skipton for 5 minutes.
This is a problem and explains why the 1645 Leeds to Morecame is still often standing room only past Skipton and often beyond - you miss that train you've got a long wait until the next one!
Given the shortage of DMU's, surplus of EMU's, and crammed peak trains out of Leeds perhaps Northern should take on a couple more 321's and not run DMU's south of Skipton. Turn units from Lancaster/Carlisle round at Skipton (possibly saving a couple of units). This would necessitate some timetable tweaking but at the same time try to provide an hourly interval service through the day to stations between Skipton and Settle.
Through DMU's to Leeds would continue outside the peak.
As I mentioned there was talk (just talk mind) to overcome the Aire Valley capacity issue a while back by splitting Carlisle and Lancaster services at Hellifield or Long Preston (thereby only taking up one path instead of two), but it still hinges on available stock.