Given the expectations of 769s working Reading to Basingstoke soon the platforms have already been made suitable for 4 car (80m) operation.
Great, that's fine then.
I think we will have to agree to disagree on the value of a rebuilt DN&S, a fraction of the money that would require could be spent to far better effect on the existing route, eg electrifying Southcote Jc/Basingstoke at 25kV OLE, for example.
That should be done anyway - it will be of marginal cost, especially if done with headspans, given the line speed is only 75mph.
I was talking long term - improving Reading to Basingstoke beyond electrification is going to cost a significant amount as well and wouldn't have anyway near the BCR of reopening the DNS.
The proponents of HS2 claim that, once HS2 is opened, passengers along the Thames Valley corridor out to and including Reading will chose to reach Birmingham and points north by changing at Old Oak Common. Southampton and other south coast passengers would travel via Waterloo and Euston rather than via Reading.
Although not currently in the action plan, it is entirely possible that trains on the re-opened Oxford - Bletchley - Cambridge line may be extended past Oxford and Didcot to Swindon and Bristol, possibly also South Wales if there is sufficient capacity in the Severn Tunnel.
If all this comes to pass what extra will a rebuilt DN&S offer and how will it compete? Don't forget that long stretches of the route are now under the M3 and A34.
They are insane then, I have checked the prospective journey times and it is 2hr22 from Southampton Central to Birmingham international direct on Cross Country, the HS2 way it is 1h26mins to Waterloo, plus 20 mins across on the Tube according to TfL's journey planner, plus 38 mins on HS2 to Bham Interchange (their new Bham International stop).
That adds up to 2h24 mins - even with a better tube connection, who in their right mind is going to take 2 changes and more expensive HS2 fares to arrive there within 10 mins of the direct service?
Bham Curzon St may be more worth it, but by only a matter of 20 mins.
As regards to your EWR point, that is certainly something I have heard of, but I understood that there were not sufficient paths on the GWML for that currently.
The rebuilt DNS offers connections at Newbury (a significant flow between Newbury/Didcot/Oxford on the A34) west on to the Berks and Hants, providing a much faster route to Somerset, Devon and Cornwall.
It also offers connections at Whitchurch on to the West of England line, providing Salisbury and the rest of the A303 corridor with a reasonable rail link to the business clusters along the A34 and M4 corridor, many not accessible by public transport. It could reconnect villages like Sutton Scotney and East Ilsley to the network as well and act as a railhead for small towns like Kingsclere - there has been a lot of housebuilding in the area and a lot of these areas will exponentially grow over the new few years.
Plus the freight that could be taken off the SWML/GWML/Reading to Basingstoke towards Bham/Cardiff/Bristol/Glasgow/Manchester is a big potential improvement, if a junction in 4 directions was built at Whitchurch to allow container traffic to head north/west via Salisbury, Westbury and Bristol over lesser used lines.
To add to coppercapped's points. From Oxford and north: Reading 10min extra assuming a dedicated nonstop connection. Basingstoke considerably longer unless you run said dedicated connection all the way. Newbury benefits of course, but there's nowhere en route.
About 5min faster.
Basingstoke would be accessible via an interchange at Whitchurch, it is currently 14 mins between the 2. Assuming an average of a mile a min between Didcot and Whitchurch, it's roughly 25 miles, plus the 14 mins to Bstoke would meet the current 55mins between Oxford and Basingstoke easily.
I agree it is something to look in the long term, maybe 20 to 30 years, but A34 congestion is only going to get worse, road improvements are not electorally palatable and the growth has to be accommodated somehow.