Yes it is all speculation, and in its most basic form as a diversionary route then I think it will take longer and have limited capacity, yes you could build it with more capacity and faster buts that's going to increase cost and is probably only justified if you decide to make this route the main line, but I don't think politically you have a new main route that doesn't serve Torbay.
You mean like increase the cost form £100m to £250m and then to £400m? (all of which have been quoted on here and are unlikely to be for the same scheme, i.e. the highest cost is possibly for something more than a single, slow speed, track with a few passing places, as it came from NR when they were taking about their brief to include improving journey times).
The current mainline doesn't serve Torbay, so what would be the difference? Other than possibly having to change at Exeter rather than Newton Abbot.
If the Okehampton Route is built it could well be better for Torbay than the DAL (other than when the line is closed) as by diverting the London trains via Okehampton it could result in Torbay seeing more direct services to London (as paths become available due to the works at Reading) as well as direct trains to Plymouth (with the trains having run from London to Torbay and then back out to Newton Abbot and on to Plymouth).
Just because a new line doesn't serve station A it doesn't mean that station A will not benefit from it. i.e. HS2 is not going to stop at Milton Keynes, yet it is fairly likely that the service frequency will improve, or how the works at Reading could lead to an increase in the number of services to the west country.