Portobello wouldn't work, it's not big enough. Remember that building a new depot needs a lot more space than an old one, because legacy rights expiring would mean new walking routes, proper spaces between sidings, and a general desire for straight sidings to make coupling easier.
You also couldn't move the depot to the east side of Waverley; either the capacity hit through Calton tunnels would be too great, or you'd be eating up capacity at Portobello and Haymarket Central Junctions sending everything around the sub.
You could theoretically build a new depot in Fife somewhere, and shuffle a lot of units there, along with expanding provision at Millerhill and a new depot at Perth, and collectively that would give you enough space to put the units. However in doing so, you're introducing a slight problem that the busiest station no longer has a depot nearby, and all the complications that arise from that.
There's a reason that most big stations have a depot nearby, as you can reap the benefits for diagramming and swapping units. Land prices in Edinburgh are such that talking about moving the depot would mean moving it too far out to reap those benefits.