Firstly, it's largely because of the franchising system rather than First Group that this situation occurred
Hopefully whatever shape the railway ends up in will stop the ORCATS raids, whereby TOCs are rewarded for running several (short) trains per hour, and we focus instead on running an appropriate number of services for the infrastructure instead.
The idea of York needing seven trains per hour to both Leeds and Newcastle is OTT, and encourages half-length trains, instead of a balanced four trains per hour (with each run by a longer unit).
Same goes with the nine trains per hour on the Manchester Airport branch, where the need to fit them into paths suitable for Cleethorpes / Barrow etc means that there are gaps of up to seventeen minutes despite the large number of services per hour - ridiculous.
But how do you wean northern England away from the idea that everywhere needs a direct train to everywhere? That's what's caused the mess that we are in - and we become fixated on a handful of Newcastle passengers wanting to go all the way to Manchester Airport, when we should really be trying to run something simple and reliable.
The apparent need for direct trains to places hundreds of miles away is a sign of weakness in your system, that shows that people cannot trust the other services.
Secondly, TPE are interested in South Route services - just because they didn't get new trains doesn't mean they're not.
Well, there's been no frequency improvements on the South TPE line since First took over (whereas the route through Leeds and the route up the WCML both saw increased frequencies)...
...they gave us two coach 170s on some services...
...the three new classes of trains ordered are for their other lines (only)...
...it doesn't require a great leap of imagination to think that South TPE is the left behind bit of the franchise.
I say bring back mk1 and 2 stock with a loco on the front. Since when LHCS need software? Power it all from the loco and have the wifi in an unobtrusive box. That way the problem is in that box or on the loco
Modern coaches are more complicated than Mk1s. This is not a bad thing.