I'm still skeptical of what's involved to make an HST suitable for this kind of operation, but at least I understand better what you're trying to achieve here. I'd have thought that 5-car 22x sets (or eventually, bi-mode IEPs) would be more suitable for this sort of operation. Run a 10-car set from Paddington to Plymouth (or Par) and split with one set going on to Penzance and the other to Newquay.
I agree that the IC125's would require a bit of work to get them to do it, but the 22x's and quite possibly IEP probably will be post 2019 before they are running to Cornwall.
I was thinking of introducing the split-able IC125's in the following sort of time-frame:
Mid 2014 franchise is awarded and hopefully singed soon after!!!
(assuming FGW retain it they could start work soon after signing)
Early 2015 franchise starts, work starts to Chilternise and enable splitting of the IC125's which are to be retained for the Cornish services (extra Mark 3's may need to be leased to enable this)
2015 summer timetable has trains as they are
2015 winter timetable would require 5 trains able to split to maintain the current Newquay timetable, may result in a few services early on requiring the DMU stock to still run them
2016 summer timetable fully operational with all services to Cornwall splitting (probably not all to Newquay some running to Falmouth)
2017 winter timetable IEP starts to be introduced on GW
2018 summer timetable more services to Cornwall by extending existing Plymouth services
2020 summer timetable possible first date the the 222's could take over from IC125's assuming that new EMU's for MML are available. 220's & 221's would probably be later than this as XC would need theirs (and quite possibly those form ICWC due to passenger growth and/or extending their network's reach) until the gaps in their network are filled in and they can run EMU's.
Even if it was winter 2016 (if they need more time to do the works) that is still a full year before IEP's are being used in the timetable and it will be some time before they are all delivered. Winter 2016 would also mean 3 and a half years of use before the 22x's are first likely to be available (4 and a half if winter 2015).
Although under the best case that is 5 years of IC use (which in no way would justify the cost) it would leave a fleet of say 15 full length IC125's, which can be split to provide 30 shorter trains. Assuming that 2020 is when the pacers are all got rid of because of DDA rules. They can be used to help the sprinters out on running services for a good few years after that.
At present the lease of a DMU is £110,000 per year, so a doubled up train would be £220,000 per year. Meaning that if the lease of the 1/2 IC125's (with four couches) was less than a doubled up sprinter (when track access charges where taken into account), I would have thought that there would have been a good market for such trains post 2020 (although not suitable for some services due to acceleration issues).
Even if they only make it to 2025 (when CP7 starts and a lot more services are hopefully able run as EMU's) that's basicly 10 years of service in their new form which hopefuly is enough time for the rebuild costs to have been taken on board. Especially with the savings of not having to lease and run DMU's for the Newquay line for 5 years at the beginning.