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I doubt it's going to happen any time soon. The residents have now mobilised and now formed a formidable well connected lobbying force.
On another point is there not a Hammersmith c.c involved considering most of the route is in that area.
wildwest-
Oh, of course, I know. Quite irrespective of the local situation, it's a bit of a dead topic at the moment, mainly because there's no clarity about what kind of technology/system to go for, and no high-level political support. There are also real problems with some of the (unintended) effects this sort of thing can have (fairly long story).
Oliver Schick
The Western Extension was misconceived in several ways--as you say, it shouldn't have been the same zone, it should have been announced clearly that it would be the first segment of a(n eventual) ring around the Central Zone (although there were no such plans that I'm aware of, partly because of what is in the next paragraph), and it should have been less expensive than the Central Zone, which should have been made more expensive than it was at the time.
Having said all that, the technology used at the time was already effectively superseded (as it is now, even though it's still in use), and the political uncertainty over any primary legislation enabling the use of more modern technology has made further progress impossible. I still think Livingstone shouldn't have gone ahead with it, as it was too badly compromised, and he should have taken a fresh look and done it properly.