Right, Penn South is driving this. Penn South will be the southward extension of the terminal complex, incorporating the 12 new tracks and the added capacity once the second tunnel opens. Everything in the existing Penn, besides cosmetic stuff, has to be integrated with Penn South plans, which aren't finalized.
The article confuses a bunch of stuff. Some of their references are from the Cuomo/early Hochul-era office tower plans, which are on ice until office demand improves. Then they show renderings which have nothing to do with the MTA. There are various groups that have submitted ideas independent of the MTA, but there's no obvious reason why the MTA would go with those ideas.
I hate to reference the garbage NY Post, but they actually have a useful article describing the meat of the Penn Station plans. They have to figure Penn South out first.
https://nypost.com/2023/09/19/penn-s...-plans-reveal/