This is true, but is a reason to go to L2 and take advantage of the functionality
There probably is not the industrial capability for significant resignalling acceleration. So the existing interlockings will have to remain in place for a long time yet.
My understanding is that the swiss systems had been migrating to align with ETCS anyway, so were close enough to have a conversion system. AWS/TPWS are nowhere near the ETCS architecture.
The Signum replacement balises installed did not require any interlocking side changes even when they moved beyond "EuroSignum" to full ETCS Level 1LS functionality.
Functionally they sat on the same relay contacts that were used for the Signum control signal and used them to control what (if any) datagram is sent to a train passing over them.
Such a functionality could be used as a direct replacement for TPWS, in that the system would transmit a speed enforcement datagram to the train as it passed over, but only if the interlocking would have done so by powering the TPWS system.
You can replace one pair of TPWS grids with one pair of balises with no interlocking changes at all. As each pair of TPWS grids is effectively capable of enforcing one set of speeds limits (with a passenger and freight value of a fixed ratio), a simple on-off switch is sufficient for the balise to replicate that functionality. The second balise in the pair would be used to provide different behaviour in the reverse direction.
The architecture of Level 1 is not really anything like the architecture of other levels, it needs no radio block centre or anything like that. Communication to the train is solely by euroloops or eurobalises.
The railway has been using different signalling systems for centuries. The idea that the railway would collapse because it can't transition to ETCS fast enough is laughable. We're still using Electric Token Block or Train Staff working on some line. We'd certainly be able to keep the AWS kit running on a handful of installations. RETB never got beyond 4 places.
It won't be the AWS and TPWS maintenance that kills it, it will be the life expiry of the legacy signalling infrastructure.
A major reason NEtwork Rail has finally decided to actually do something about ETCS is because it has become clear that the signalling supply chain cannot possibly sustain resignalling with conventional technology fast enough to avoid a reliability death spiral.
EDIT:
Here is a paper about the
Signum replacement rollout that goes into some detail about the lineside equipment unit used