Sheffield wanted an HS2 station in the city centre, even if it meant using classic compatibles on an existing alignment. HS2 isn't going to pay for the northward connection from Sheffield, I guess they figure NPR/HS3 can pick up the bill for that. So services to Leeds and beyond may all bypass Sheffield, at least at first. It was a tough decision with none of the affected parties agreeing on one solution, so HS2 had to pick what they considered the least worst option.
I don't know why people seem to get miffed about 'only' having classic compatible trains. These will be just as fast and comfortable as any captive trains when on the HS2 main line, and in the case of the Sheffield train can probably be a full 400m length as well. Oh and there's the fact that the initial fleet is to consist of ONLY classic compatible sets, so Sheffield customers will have no different an experience to those in Birmingham and Manchester at Phase 1.
Victoria isn't particularly convenient either for the centre of Sheffield or for onward connections.
The orginal Meadowhall-only proposal was fairly good for local connections, as well as road access. By contrast Victoria would be dire, with no other local railways serving it, a long walk to the nearest tram route, and only limited, (albeit high frequency) bus routes passing by. It is the 'wrong side' of some very large and busy roads more than a kilometer from the town hall area (over double the distance from Midland to that area), so not attractive for walking.
I believe the new route further east is actually faster . . . Once they discovered that the option now preferred would save over a billion I believe Meadowhall was doomed.
That's a win win. Faster and cheaper
Where do you get that there won't be a northward connection? The overall map shows HS2 looping off onto the classic network to go through Sheffield Midland then coming back on to join HS2 below the Leeds/York split.
The simple schematic map in the Mirror article may indicate other unfunded possibilities and aspirations. It omits any service to Stoke on Trent, the subject of another recent announcement by Chris Grayling and which can be delivered by the work proposed. I'm sure the map came from DfT as claimed, but it may not have been part of the current official phase 2 announcement the article is about. The main map, showing the more detailed work superimposed on Ordnance Surveys, shows no northern junction for Sheffield trains to loop back onto HS2 for Leeds.
I think there may be a good case for extending the Sheffield service 5 km beyond Midland, via the classic tracks to Meadowhall to terminate in dedicated new platforms as discussed here:
http://www.railforums.co.uk/showthread.php?p=3059313&postcount=21
This could avoid long turnback layovers for HS2 trains at the busy Sheffield Midland station itself, perhaps obviating the need to provide additional platforms at the constrained site, as well as providing South Yorkshire with its 'regional parkway' station after all AS WELL as Sheffield's highly desired city centre stop. Sheffield's additional HS2 parkway would be positioned much better on the road network for those accessing the trains from many directions by car, and would also offer its own range of local public transport opportunities already serving the interchange.