To get a remotely sensible curve radius (c.150-200m) you're going to need to take out those industrial units. And that's before we get to the junction geometry at either end.
The original curve had a radius of 240m odd and neatly missed both the units in that picture; however it equally neatly bisected the next building to the north.
I can't imagine that it would
really be that expensive to buy them up, in comparison with the price of a glossy PDF full of made-up figures or Network Rail's thoughts about inserting a signal; nor in comparison with the considerable extra length of construction that any useful alternative route through that general area would require. And it will have to be done sooner or later because otherwise there's no way to arrange an approach to Leicester that isn't completely rubbish and hardly worth bothering with at all; and the longer these things are left the more time there is for the costs to increase disproportionately and for new kinds of money sinks to be invented to afflict railway projects with, so procrastinating over it makes it so much the harder to get done eventually.
It's left the Coalville line in a similar situation to the March - Wisbech line. You can't reopen either because the cheap solutions (ie Burton to Leicester South, Wisbech to March shuttles) are not solutions, but every time you add on what you need to create a sensible solution the costs soar and nobody will give the go-ahead for such a grand scheme.
It's the standard British single-buttock approach to more or less anything. Do only the easy bits, ignore all the hard bits and pretend they don't matter. And even on the easy bits, skimp and bodge things in a way that both restricts their usefulness and makes it maximally difficult to un-bodge it later. So what gets constructed is not so much a complete project as something resembling someone with one arm and one leg cut off and the other two limbs semi-paralysed. It can never fulfil its potential anyway because significant elements that make it make sense have been omitted; it doesn't even fulfil what potential it does have, because even the easy bits have been done badly; and ever actually completing the rest of it just doesn't get to happen at all. And a stub-end branch line that fails to connect at both ends, offers a roundabout journey in one direction only, and is entirely useless for journeys to the closer existing major destination to the blind end and for onward connectivity to London and the Home Counties area, is a fairly obviously suboptimal outcome of this approach.