They've got a enough to get from north of Cathays to beyond Ninian park. Not sure how far that is, but I suspect it will mean they'll need wires from probably Grangetown down to Penarth.
I think in terms of tram applications, putting them on Coryton to Penarth (a short inner city service) is a better use of resources, then the 756s can be used elsewhere. Especially because the council at least have aspirations for a cogan platform on the penarth line as well as a new station at the Gasworks. With that kind of station interval (especially when gaps between Queen Street and heath are filled with at least crwys road), trams make a lot of sense.
Possibly the 756s can run a service utilising the freight line from Ystrad up to Nelson and Trelewis, after all the metro is supposed to be about better connecting the valleys.
Iirc the tram depot itself is said to have plenty of spare capacity, especially if you can provide some extra stabling elsewhere like Treherbert already has.
Yes please, this is what I would do!
With the right infrastructure, 398s could work Hirwaun-Cardiff Bay and onwards to Splott and Cardiff East/Parkway, since these are the routes where the tram capabilities are needed. The current 'super loop' diagrams could swap out Aberdare for Treherbert, using the higher-capacity, toileted 756s for Merthyr and Treherbert.
Could also then run the extra 2tph from Coryton down to the Bay using 398s. I presume the reason for not putting trams on the COY>PEN>CPH diagrams is due to lack of OLE from Heath Jn down to Penarth and back, so they could only work this diagram if that line is electrified.
If keeping the 756/0s though, get a few more and extend the Caerphilly leg up to Bedlinog (2tph) on the old heavy-rail Cwmbargoed line, thus upping Ystrad Mynach to 6tph and not increasing the congestion in Cardiff.
There was mention in post #23 of this thread about the potential use of tram-trains on Caerphilly to Newport via Machen, a line I would very much line to reopen, so if 398s are what it takes, that's fine by me, although obviously a 756 is much more ideal.
Another route that could reopen more easily with tram-trains is Caerphilly to Senghennydd, which the Newport diagrams could run through to. This would mean Senghennydd passengers would have to change at Caerphilly for Cardiff, in order to keep the current 6tph from CPH to Cardiff, so as not to clog things up too much. So that would be a Senghennydd-Caerphilly-Machen-Newport route - that would be lovely please!