A bigger ticket hall and circulating area is definitely needed and if you are building that, the eastern end of Euston Square is only 100 metres away across an already cleared site. Euston Square is considered unsafe in a fire due to the exit being only at one end. A Euston link solves this.
And to me the Hammersmith & City does not replace the Liz Line but complements it. For plenty of destinations it is better and lots of people interchange between the two stations. All lines are crowded. I am not sure the Northern Line has the capacity to take everyone to the Liz Line.
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