The idea was for single ended locos based on the class 67 with four carriage rakes of new build coaching stock instead of the 220s, and the 221s were to only have been four carriages in length. I can't remember what the reason for Virgin going for a squadron fleet of DEMUs was, but I don't think that lack of acceleration was it (A 67 on load 4 can accelerate pretty rapidly!). Track access charges might have been.
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It's all down to personal taste, I suppose: I think that the Mallard and XC HST seating (Grammer, is it?) is the best long distance seating out there.
The whole network might have benefitted from sticking to Loco hauled services with a new generation of coaching stock. That way all intercity stock could be cascaded around anywhere, like the HSTs are now. I often wonder how we will ever manage without them.