Two things...
No-one has mentioned an order big enough yet to replace all pacers and increase capacity where it is needed, we're talking somthing in the order of 100 - 140 units here!
Electrification could release this amount of units, but we could't (without total network closure) electrify enough in time.
The 3rd Rail Islands should be done ASAP as a seperate project to release the 171 fleet, as should the thames valley branches be included in the crossrail / GW project. But that still doesn't release near enough units.
To be contrivertial here, why not give somone like CSRE a chance? And even more controvertial, give the new order to....
Northern.
The pacer fleet darn sarth and in wales can be erradicated with a cascade from the Electrification. If you want the numbers I'll get them again for you, but trust me, it can. If the valley lines are added, then it's a massive boost for capacity aswell, this will leave 98 pacers with Northern, (7 with FGW and 15 with ATW).
So... why not, on monday morning, order, from CSRE, for Northern, 10 units, for evaluation. With option for another 100.
These would be basically a 2 or 3 car 20m 1/3 2/3 layout, with 2+2 seating, and set out as a 'commuter' train. Preferably a 3 car unit as a lot in Northernland can take 3 or 6 car diagrams. The eventual fleet could have a mix of 2 and 3 car units, with end gangways.
I would also be asking CSRE to make them coupleable, with BSI couplers to the sprinter fleet. I know that would be a big push, but it could be done.
As a final note. I've seen EDMU / DEMU units mentioned...
Now, they could be a damn good idea, especially on routes around Greater Manchester and Leeds with fractions of Electrification on most of the routes. But, looking into the spesifics, to recive any benifit you would need a minimum of a 3 or 4 car formation. Could be somthing to look into and evaluate, but a brand new idea? When we only have 7 years to get the fleet in place?
I'd say, give CSRE a chance with 10 units for evaluation in Northernland, if it doesnt' work out, they use stuff that is commonly servicable anyway.
Either that, or since there is only really one DMU that is new and proven in the UK, order 50 2 car and 50 3 car 172 units. For Northern.