Really? In my role as "layperson-who-has-read-a-tiny-bit" it seems to me that speed reduction would allow you to run more trains, closer together, which would result in a greater people-per-direction-per-hour. What am I missing?
The technical headway (what the signalling permits) of the WCML fast lines at 125mph is actually around 75 seconds, ie in theory you could have 48tph. At this headway trains are around 2.5 miles apart - more than twice as long as the braking capability of the rolling stock.
However it is not the plain line sections that are the capacity constraints, but the convergences, divergences, stations and any speed restrictions. It is this that limits route capacity, rather than looking purely at line section capacity. Add in a little margin for error and that’s why the WCML fasts operate on a 3 minute planning headway (what the timetablers use). Indeed I have just seen 2 trains on the down fast exactly 2 minutes apart.
On HS2, At 250mph the braking distance effectively quadruples, and the distance between trains will not quite quadruple (as the signalling overlap will be broadly the same), and thus the technical headway will be around 140 seconds. ETCS helps here a little. However you still have most of the other issues re the limitations to route capacity, albeit not quite as constraining, and thus a planning headway of 3 minutes is still very achievable.