This now appears to be an 'engagement' with stakeholders rather than a 'consultation'.
I do wonder to what extent this consultation / engagement is a partly a (clumsy / forceful depending on viewpoint) negotiating exercise - that is, TfL negotiating with RDG / GBRTT / DfT to increase their share of the Travelcard pot.
Also, perhaps TfL making the point that they have a huge maintenance liability for the (CCST) mechanical magnetic stripe ticket readers in gates across their station estate - mag stripe ticket readers which now get far less use since the introduction of Oyster and contactless.
Then there's the broader issue of the (limited) future of CCSTs across National Rail, which informed posters on here say are on their way out.
The question then is in a CCST-less future, how do you issue Day Travelcards?
In the Netherlands (and similar is done elsewhere), NS issue one-time use 'smart' tickets as cardboard tickets with RFID chip integrated in them which then scan on the readers like a smart card. However this is environmentally very wasteful (they're non-recycleable), the ticket stock itself is more expensive, and in the context of the National Rail network here it would require all NR stations that sell Day Travelcards to be equipped with new ticket issuing equipment just for this purpose.
One can perhaps see the dilemma TfL are in regarding this. And if anyone says e-tickets... well, I wonder how many tens or even hundreds of different people might end up using the same Day Travelcard e-ticket in a day!
Regardless of all these factors, I don't really want the Day Travelcard to die!