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Where was the bay at Todmorden? I can't see any room on either side on aerial photography, and the buildings look as if they would prevent anything longer than 2 cars even if the relevant platform was extended towards the viaduct. In any case I can't see the need for the Blackpool train to reverse here, as it would make an already fairly slow train take 10 or so minutes longer, with the only advantage being that passengers between Todmorden and beyond Blackburn would avoid a change of train somewhere in between.
Todmorden had a loop round the back of the down, eastern-bound platform, but with no platform face itself. As I remember, this was used mainly for the stabling of coaching stock.
The bay was at the eastern end of the up Manchester platform, allowing access across the viaduct and on to the original curve towards Copy Pit. It was, as you surmise, only a short bay, admitting only a 2 car dmu or a short locomotive-hauled train, and was used mainly by connecting services to Rose Grove and Blackburn from the up Calder Valley expresses.
As far as I remember, none of the through services from the Calder Valley towards Copy Pit reversed at Todmorden. Instead they used the link from Hall Royd Junction, avoiding Todmorden, as indeed they still do.
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Eureka are going to be leaving that building so the platform on the current track edge can be bought back into use, as well as the bridge access.
I believe the plan is that the current road bridge/car park/taxi rank area will be demolished and replaced with a bus station.
I assume the old station building will be an integral part of the whole new interchange.
As I've said before on these forums, an integrated bus/rail exchange in Halifax was an opportunity missed when goods lines were removed and the station rationalised in the 1970s; and again, later, when the original bus station was moved from the Crossfield site to the existing "new" one off Winding Road.
I am very interested to read from your post that there are now actually plans for a bus station to be built by the removal of the bridge, taxi-rank and car-park area. Someone has been listening to me!!
However, as any such new interchange would be on the site of the present car-park for Eureka! [and as far as I know, although they may be giving-up their premises on platform 3, they are remaining in their present building on what used to be the goods yard].
So I'm afraid I'll reserve my full rejoicing until I see the actual plans! So, can you provide a source, please?