I don't think so. There are already mid-platform signals, and a train can arrive in the B end of the platform while the previous one is still in the far end. I don't think they like to do this, because if passengers think their train is about to depart from the other end, the resulting stampede will cause more delay than there would have been if they'd just kept the train outside the platform.
I'm not sure what the overlap is on the mid-platform signal, or whether better speed supervision under ETCS would allow it to be shorter. If so then slightly longer trains might be possible in the departure end of the platform, though the extra length would be on the very narrow part alongside the stairs.
The entire Northern fleet based west of the Pennines, plus the whole TPE fleet and all of EMR's DMUs, would pass through here sooner or later. None of these are likely to be ETCS fitted in the foreseeable future (probably not until and unless WCML north gets ETCS) so a small-scale ETCS for Castlefield Corridor would trigger a horrendous stock conversion cost.
So I'm afraid the previous suggestion of digital signalling to solve this problem was no more than a digit in the air.