They’ve done what Virgin CrossCountry did and halved train lengths for double frequency. An extra train per hour now runs between Bristol and Salisbury, utilising the extra stock.
Had GWR been able to retain the 769s, then who knows, perhaps they would have been able to have both.
GWR did't halve the train lengths, they cut some 5car to 4car (although many were, and still are short formed as 2car and 3car), and few still are 5car
The extra train already operated some peak hour workings, but has now been added all daytime Mon-Fri. Most don't go to Salisbury but terminate at Westbury or Warminster or Frome.
There simply isn't enough 158, 165, 166 to operate them all at full length (strictly there is on paper, provided none need fixing and 100% are available for service), but 100% availability is not realistic with aging 31-34 year old diesel trains.
If GWR get them could be used on either of Cardiff-Portsmouth or Cardiff-Penzance route, but how many would be available is unclear (there were 11 2car and 16 3car, but some are dead). So not really enough to fully convert both unless trains are limited to 3car and pairs of 2car.