Personally I think that further fragmentation would just add to the mess.
Now I know that plenty will disagree with me, especially those politically right of centre, but I think the best solution would be a new version of a national rail system. The main problem is that meddling politicians would never agree. Mostly, they seem incapable of long term thoughts or solutions, and cannot think beyond the next election campaign.
I would like to see a very long term finance agreement between "The Railway" and "The Government", and then to find decent managers who know how to run railways - maybe someone like Chris Green or Gerry Fiennes. Secondly, the Civil Service, especially DfT, would be excluded from any connection with railway planning or operations. The only CS function would be to process the agreed transfer of funds from Government to "The Railway".
The Government / Railway "agreement" would include some basic provisions about service levels & operating hours, but railway management would have some freedom to make sensible adjustments to timetables, etc.
As for the current "Northern" timetables, etc., I would, for example, reduce the number of through services for Manchester Airport, and return to regular intervals some of the timtables that have been disrupted by changes / additions to TP & WCML (Manchester) services.
For example, I would have a 15 min. all stations service between Manchester Piccadilly and Manchester Airport, one from Liverpool (via Earlestown); one from Blackpool (via Bolton); one from Leeds via Calder Valley; and one from York via Huddersfield.
Subject to paths being available, there might also be 1 or 2 fasts per hour between Piccadilly and Airport, one from Scotland, and one from Hull (via Doncaster & Sheffield). The latter would replace the Cleethorpes service, which would no longer operate west of Sheffield.