It'd be interesting to see the financial implications of ending the franchise early.

To me it makes sense to be state run as there isn't competition on a day to day basis.

If i stroll down to Ponty station I can only get on a TFW train, therefore the market pressures that drive efficiency in a well functioning market just don't exist - so the advantage of the market over public ownership is evaporated.
The theory is that firms compete for franchises - but that's only once every 20 years, and the years in-between there's nothing.

I'd like to see it state run, but with pseudo market-forces introduced.

Offer bonuses across the workforce based on service, price etc compared with the rest of the network or perhaps other countries.
If our trains are the cheapest to use and the most punctual then everyone gets a bonus etc.