Wouldnt even get off the fag packet unless it was done to up the frequency on the line. Nothing but logistics is stopping a direct service now.
A siding at Windermere won't help the frequency - you'd need a passing loop somewhere along the line to allow higher frequencies. All a siding would do is give somewhere for a 'special' train to sit while the regular service runs up and down the line. But the rub is - it could only do that if you also added some signalling along the line. I'm guessing that at present there is no signalling at all on the line - it runs on the basis that only one train at a time can occupy the entire branch. I'm also guessing that adding some signalling where there is currently none would bump up the cost a
lot. Rather hard to justify if it's only for irregular excursions, but perhaps a bit easier to justify if it was for a loop to allow for a more frequent day-to-day service.
Although I realize nothing like that is going to happen in the foreseeable future, I hope the electrification is done in a way that does allow for the
possibility of adding a passing loop later on, as I'm sure the branch could easily support a more frequent service, at least in the summer.
One thing it will sort is the tortuous level crossing restrictions.
I'm guessing you particularly mean the one at Burneside. It'd be very nice if that was sorted part of the electrification - but is there any reason to think it will be?