The big issue with a driver receiving information from both trackside signals and cab display is what happens when the two give differing information.
The most important case of course is when one is telling the driver to stop and the other is telling him that he can proceed. For example, if the signaller "pulls the button" to stop a train, it may take differing times for that to reach the lineside signals and cab display. In an emergency, you want the driver to react to the first that tells him to stop. So I can see why the idea of allowing drivers to ignore red aspects was not taken up.
However, you also need to consider how the driver should react if the two are in effect giving radically different speed info, eg if the lineside signal is displaying single yellow but the cab display is telling him that he can go full throttle.
Where ETCS is overlaid on conventional signalling, then the movement authorities should align with the existing signalling, as with the GW overlay. However, the problems come where the ETCS provides additional capacity than the conventional signalling, as on Thameslink, as the ETCS may permit trains to do things that the conventional signalling won't, so inherently the two will not align. HMRI in particular were very opposed to drivers being given conflicting information. Which is why in the past conventional wisdom was to display a special "cab signalling" aspect.
However, even with overlay ETCS, the conventional signalling will behave differently for trains running under ETCS control. For example, there is no need for approach control of junction signals for diverging routes, as the ETCS will supervise the train speed for the junction. So if the signalling knows that the approaching train is running under ETCS, it will bypass the usual approach controls and allow the signal to clear earlier than it would for a traditional train. The idea of allowing the conventional signalling to display a yellow aspect when it knows that an approaching train is running under ETCS, when it would usually show red, seems to be just an extension of this concept.