Hmm, not trying to defend Arriva particularly but the transfer in of older Mercs was all to do with needing to comply with London LEZ (Euro 6 etc) in other places.That rather over-simplifies the story of the ABC network. It was designed to look at some areas after the loss of right to operate through university grounds. This meant they were competing with Safeguard. Safeguard's passengers stuck with them, but also competed on the Bellfields Route (3, then B), which terminated conveniently near their new (larger) depot. As Arriva had annoyed the passengers with the swap to minibuses with no frequency increase passengers gave Safeguard a try. The C to Stoughton was only suspended in covid times and is yet to restart. The fact that Guildford is still operating reduced timetables and has recently had a delivery of even-older-than-old buses suggests it isn't suitably profitable.
Re the ABC set up, I include myself as a loyal Safeguard customer, (well pre covid I was)but from personal observation (Not exactly scientific I know), the Royal Surrey Hospital generates increasing numbers of passengers, many of which are to/from the rail station, most will jump on the first bus going to/from the hospital - Arriva/Safeguard, some try to board Stagecoach 1/2 even though it takes longer via UNI & drivers are fed with telling them.
On the plus side we have seen the back of the Streetlites (I personally detest Streetlites - ok, ok personal taste etc).
Having now read the Telegraph article, it seems that Arriva UK is going to be around for a while yet, the writer believes that the Arriva Transport empire (excluding UK) is now being divided up into keep/dispose parts.