Well if there was such a massive case for Okehampton why isn't there a train service there now since it could be reinstated to Exeter for a fairly moderate cost.
To build Sourton Parkway, you need to get Meldon viaduct back into service. Once you've done that, and reopened Tavistock to Bere Alston (which is going to happen anyway), you might as well put the remaining 12 or so miles in the middle back.
Unfortunatly the whole things gets hijacked by those who want to see the old southern line reinstated in full we even get twaddle about running trains to Waterloo on it. Of course it is the most likely solution if any because it is the cheapest, however it doesn't mean its the best,
Theres no practicable way 8 car HSTs from Paddington can use it (except as a diversionary route). A shuttle to Exeter would be a complete flop so extending some car 159s from Waterloo is the obvious option.
if we go for this option then you are also commited to spending large amounts maintaining the Dawlish route and if that eventually becomes unsustainable then you either build a Dawlish diversion anyway or South Devon loses its rail connection, that's why a Dawlish diversion is the correct answer in my book, but I don't expect its the answer that will happen.
Do you really think NR would be allowed to close Dawlish and Teignmouth if a Dawlish Diversion was built, so it would have to be maintained anyway. In any case as Network Rail own the coastal strip they are saddled with maintaining it even if the line shuts (unless they can find some mug to buy it off them). There are also problems with the line being overhung by towering cliffs for several miles and the line west of Newton Abbot curving like a corkscrew around the sides of steep hills.
A Dawlish Diversion cannot be built for less than £1 billion. Reopening the Southern Line may cost as little as a fifth of that if Meldon Viaduct can be put back into service without being rebuilt (something I have reason to believe is now being looked at).
The Southern route being reopened would also allow nighttime/weekend diversions along it making it much easier to maintain and work on the GW route and giving a more reliable service on it.
But, yes, the ultimate goal is 159s running from Waterloo to Barnstaple and Plymouth, limited stop to Exeter every hour on a redoubled main line, then dividing at Crediton into Plymouth and Barnstaple Portions, with the current Waterloo - Salisbury services increased to twice hourly running all stations to Exeter Central then reversing and continuing to Exmouth. (Something similar has already happened once with Chiltern which was reduced to a single track line north of Princes Ris with a handful of services from London to Banbury)
Part of this would obviously be paid for by closing the Berks and Hants between Castle Cary and Taunton and singling it between Newbury and Castle Cary, with closure of the Frome and Westbury avoiding lines and, a six times a day DMU shuttle running between Newbury and Westbury once electrification to Newbury is complete until such time as the pax can be driven off it in sufficient numbers to close that too. Finally all the buildings at Exeter St Davids Station will be demolished and replaced with Bus Shelters
Then instead of the music playing at Waterloo a permanent loop of the sound of ravens crowing, alternated with chants of "Death to the Great Western" will be played on the PA system at Waterloo Station.