Although I think there might be specific cases where L1 LS could be a solution, AIUI the ETCS concept is that you are either in an ETCS area or not, and therefore it's not quite so simple to fit ETCS at individual signals as it would be TPWS/AWS. There's almost certainly a way around it, but then it gets into 'why not just go ETCS L2 Overlay?'.
ETCS L2 Overlay has substantial costs beyond L1 LS though. Continuous supervision of speed and the like is hardly cheap, the LS specification does not require universal installation to my understanding, merely that no other systems are in use.
An L1 LS conversion ("merely") requires a switchable balise in place of each switchable AWS or TPWS unit, and a fixed balise in place of each fixed AWS magnet.
Indeed, the quality of surveying required for the Level 2 installation will be a substantial cost.
Tbf fitting of trains has to happen for any ETCS project, so isn't likely to be a major sticking point. The conversion of the infrastructure, however, is another matter. Didn't the Swiss spend quite a lot of time aligning their legacy systems (similar to the Belgians) so that the switchover could be done more smoothly? (Worth noting the first deployments of ETCS L2 in Switzerland were not without their problems, and as ETCS has matured in Switzerland the rollout has gone smoother).
They apparently did, "EuroSignum" and "EuroZUB", although I believe this was more about allowing a transparent conversion with work between trains.
There are about ~12000 TWPS fitted signals in the UK, I don't really have a figure on AWS but lets just guess 30000.
42000 replacements to eliminate TPWS and AWS - I think it is probably a more tractable solution than a large scale L2 programme in the near term (although obviously lower reward!)/.
Two staff could install the drop in self powered ZUB/Signum solution in two hours, supposedly. So, supposedly, about ~170,000 staff-hours trackside for such a programme. One could theorise about some sort of "rolling closure" programme moving along a line.