Looking at the Google satellite view, the earthworks are clearly there for a south to west connection, and they are shown on old maps of the area. However none of the maps I've found (from any era) show any track laid.
Was this another instance where the earthworks were carried out but never had a line laid on them? If so, was the construction just a way for the GWR to threaten the South Western's dominance of east Devon?
A chord there looks relatively straightforward, although of course the cost of track and signalling mod's would be high as always. A chord at Dorchester looks much more problematic especially since the recent redevelopment in the area near south station.