Keeping a basic service open to serve intermediate settlements would have been fairly sensible, particularly as to all intents and purposes, it fed into the rest of the network at Nottingham (Arkwright/Midland).
I imagine the number of people changing and continuing onward at the two Notttingham stations on a daily basis would have been less than double figures - given the train service supplied. Leicester to Leicester - even fewer. Ditto Rugby to Rugby.
This is more plausible, with the eventual closure being a poorly thought out cost cutting measure, than BR supporting a preservation proposal (apparently they weren't particularly helpful in the early years of Peak rail).
I don't think it was poorly thought out. On the contrary - quite well thought out, if the ploy was to "manage" the objections over two phases to ensure closure. BR/the government were determined to close it. As for any idea that BR wanted to help the potential preservation movement, that scores 0 out of 10. I'm sure BR were not the slightest bit interested.
But, I was wondering about 9 months ago (and thought of starting a thread on this) - if BR had been more positive, and with a more positive government - if a more "basic railway" - with singling over selected sections a la Salisbury-Exeter - might have worked. Or at least justified a subsidy based on the 'socially necessary' test.
In essence, it would have been based on a local service between Nottingham and Rugby, feeding into a semi-fast onwar service alternating to MArylebone and Banbury-Oxford.
It would have needed re-opening some stations between Nottingham and Leicester like Ruddington, and the present day stations on the Loughborough - Leicester North section, and maybe Whetstone.
What I mean is something like:
Nottingham Arkwright Str
08.00 - Semi fast to Marylebone (Cl 115 four car unit).
08.10 - Local stopper to Rugby
09.00 - Semi fast to Banbury (or Oxford) *
09.10 - Local stopper to Rugby
repeat pattern.
* to save costs, this service might have only run from Leicester most of the day.
But this would have required significant investment in singling and re-signalling the line, and I suspect the LM region were simpliy under instructions from 222 Marylebone Rd to close it, end of.