If not all the way to Central, would South station be more useful if the line was extended a bit further into town and a new station was built on Bloomfield Road near the football ground?
I think the cost of reinstating the bridges would put the project onto being unaffordable. Also, according to the Gazette, the funding to build "whatever" on the old Central Station has been approved, so that would be out. Generally, I've not heard anyone moan about getting off at South station as they have a specific reason for going there - BFC, or the pubs on Lytham Road.
The trams proposal just isn't financially viable in my opinion.
Having an interchange at Kirkham was done in the 1980's - and it was absolutely hated.
Between the east end of Lytham and Kirkham there just isn't a market. The halt at Moss side got 2,800 entries and leavers according to the stats. A campaign to re-open Wrea Green has never got anywhere and despite the new houses being built, everyone is using a car, so they won't get a tram to Kirkham or Blackpool.
Buses generally run empty from Lytham to St Annes - except at peak times obviously. At most other times, passengers are on concession travel, so without the peak time travel or subsidy from the government, the buses run at a loss. Stagecoach does well as it goes from Blackpool to Preston linking Warton, Freckleton which aren't part of the tram proposals. The small 76 bus was recently reduced to 1 an hour as it just isn't commercially viable to run a service.
I can't see how they could link the tramway at Squires Gate to the railway line. It's all pretty much built up these days.
I'm of the opinion that if it is kept as simple as possible (ie a passing loop) then we might have a chance of getting it. Wanting to extent the line or converting it to tramways (or interchange) would just add too many variables for it to be considered.