I'm not sure that any TOC can say that they'll "lack capacity" in future, given how much demand has plummeted and unstable future travel patterns will be.
However, if you assume that there won't be sufficient DMUs to cover Wales/Borders over the medium term then binning the 170s and retaining the 175s seems a fairly sensible approach (given that the 170s will find homes at four or five other TOCs, whilst the 175s are a small non-standard fleet with known reliability issues)
I appreciate that they are generally better behaved nowadays, but it's still going to be a risk for another TOC to take them, when Northern/ EMR/ XC/ ScotRail could easily absorb some more 170s without a lot of fuss.
The other problem with another TOC taking 175s is that the market for "medium distance 110mph DMUs with end doors and no corridor connections" is fairly saturated, compared to the number of routes that such units are actually desirable for - given the way that TOCs keep trying to order "flagship" trains for "flagship" routes (which means dumping unsuitable 158/170s on local stoppers that they struggle with).
At least with 170s going to XC/EMR etc, they could just allow existing services to be doubled up, provide a few more seats, a bit more resilience etc.
Keep things simple, no need to introduce some convoluted new services to justify keeping mid-life stock (or re-jig existing diagrams to create a solution in need of a problem).