Me, I love designing on relay interlockings, E10k specifically. Hate black box systems as they are boring!(Lengthy, excellent explanation snipped)
And that pretty much sums up the challenges. There’s no “one size fits all” panacea in terms of how you implement it. Each case has to be looked at on its own merits. Design, installation and testing resources are at a premium, if you can even find anyone willing to take on relay-based design: that is becoming a problem.
But to the topic in question relay interlockings are very safe, and although they can be challenging even for experienced designers in very complex areas they can interface with many different modern systems. For example I've designed a relay based GSP (Ground switch panel, located in a small case line side which controls points and signals that usually lead into a siding or depot, and can only be used if the signaller has given a release via the main signalbox panel) that interfaced with the ERTMS system in Wales.
The main issue I see as a designer is that the nature of the railways, especially since privatisation (which happened when I was still in primary school I think!) has created mini monopolies in regard to certain systems which in my opinion is why our railways cost so much to maintain or upgrade. I really think the new GBR should design their own systems that are very cheap and can be retrofitted to lines. The initial cost of R&D may be high but much cheaper than trying to implement ERTMS everywhere.
My thinking is based on the example of Ukraine. The cost of a cruise missile or even conventional unmanned drones are astronomical. Ukraine has adapted by creating super cheap but very effective drones in their thousands. The technology at the creation of AWS and TPWS is totally inferior to the technology of today, there are many ways, with a bit of thinking outside the box that could leverage modern technology to create an overlay safety system that interfaces with existing relay ones for a considerably cheaper cost if there was a will to do it. Unfortunately I don't think there is.