The most logical next steps for electrification are to complete the things which they didn't manage so far. Some of these are dependent on other work - the signalling works around Bristol and Oxford, or the plans for NPR - but there's enough uncomplicated work to keep the industry ticking over and able to demonstrate better control of costs. The industry is going to be very interested in the Cardiff scheme as it provides an opportunity to demonstrate cheaper electrification in a mainline-compatible way and with more freedom from NR control. I think it's also more likely that the ROSCOs will get involved in electrification if there's some special dependency on train technology too. For instance, if the industry looks at wiring up the remainder of the Birmingham suburban network with discontinuous 25kV AC (ideal for busy commuter services as well as enhancing the case for bi-modes on many regional and CrossCountry routes) that would require trains with battery requirements tuned exactly for the route.
Bi modes are the death knell of electrification because you run the same trains on the same track to the same timetable. The cost is diesel, 2.5 tonnes weight (~30pax) on every other vehicle and some externalities.
Logically then there's no reason to go beyond diesel-electric transmission. We may as well start de-wiring any sections of track to be served by new trains.
Even at the height of bionic duckweed fantasies, the WCRM went ahead with a mixture of electric Pendolinos and diesel Voyagers. You say in a later post that Voyagers can match Pendolino timings. Why didn't they just standardise on one type of diesel train, if the benefits of electrification are so small? The existing WCML electrification would be a sunk cost so its existence doesn't mean you have to pick a worse option for a the future.
Is it possible that there are actually other significant lifetime benefits to electrification which our fragmented railway system find hard to afford? Obviously back in the time of BR, they could easily justify upfront investment in electrification by their own cost savings in procuring and operating trains, and collecting ticket revenue from services. Nowadays the cost of electrification has to be borne by the state but the way it pays itself back becomes very unclear. It'll be cheaper for a TOC to lease new electric trains from a ROSCO and then run them than equivalent diesels, but these costs are merged in with other costs and profit sources when the government ranks different bids. Unless the TOCs provide line item comparisons of individual costs with and without electrification it's pretty hard to see where that investment went. Is that enough justification to stop it completely?
There is no sense in spending £1bn on Kettering to Sheffield to deliver a very small operational cost saving and a trivial time saving. It is desperate times when £1bn has to be spend because of some absurd not thought through commitment to phase out diesel trains. When diesel trucks are phased out, then trains will follow as they are generally the same underfloor engines.
What is the operational cost saving? You say it's small, but it's a cost over the lifetime of the electrification infrastructure.
You can only make a decision like this if you have full knowledge of 1. what is possible with different technologies and 2. what these options will really cost. The DfT still appears to believe that self-powered trains of equivalent performance to electric sets on MML InterCity runs are viable and affordable. So far the industry seems less confident about this, and they're the ones who'll understand this best. Electric trains are a known quantity with little risk. If the wires are going to be up, then the rail industry can easily promise a certain level of performance and capacity. If you're depending on speculative technologies, you're likely to face quite considerable problems.
And again, it's not Kettering to Sheffield. At this rate it'll be just south of Market Harborough to Clay Cross. There is precisely zero choice to be had in wiring up the whole of Clay Cross to Sheffield, as the specification for the classic-compatible trains which will use it has already been put out for tender. No bi-modes, no hydrogen, no batteries. Only full-blown TSI-compatible electrification will do.