Exactly. If GO is going to operate more long-haul services, they need rolling stock that is a hybrid between their existing bi-levels and the coaches VIA offers. More comfortable seats, smaller vehicles, and maybe some food options (but not full service like VIA offers).People need to realize that at some point, travel times become so long that people do not see the value in taking it. That is likely what is happening with the London GO Trains.
Niagara is the lone exception as it is a tourist draw of its own right and having direct service to and from Toronto is a win-win. Other than University Students, who would willingly sit on a train for 2 or more hours heading to London?
As was said here several times, if GO wants to do long haul service they need to services and comforts to go along with it. They will eventually need more comfortable seating with tables and snacks. Can you imagine taking a GO train to Ottawa?
Personally, I think there should be 3 "tiers" of GO service:
1) RER for the Metro GTHA, using electrified vehicles running at high frequencies
2) "Classic" GO to the areas a little bit further out (Hamilton, Bowmanville, Kitchener), as well as for additional rush hour capacity and express trains
3) A GO/VIA hybrid service for those 2+ hour long trips to other metropolitan centres (London, Niagara Falls, Peterborough)