They still want the route into Piccadilly for Northern Powerhouse Rail - that will be unaffordable without HS2 bearing the cost of tunnelling under south Manchester, but they won't compromise the route.
They are not going to spend £30-40m on a new station, excavating the cutting behind the Tesla garage, let alone how many millions it would cost to reinstate the Ardwick curve (after spending a billion on the white elephant Ordsall Curve). It would be easier (not much) and closer to the Arena to put a new station on New Viaduct Street between the gas holders, but you're not going to have trains stacked waiting like tube trains at London stadia.