Looks like Lobley Hill Estate (South) won the argument with GNE as they were essentially cutting a direct service from the estate to Newcastle as the proposed Hourly 95 which was terminating at Gateshead.

Personally I would suggested extending the proposed 95 and existing service 96 from Gateshead into Newcastle (Market Street) as a reasonable replacement with the X32 being more of direct express along the A692 (Lobley Hill Road) and would've also provided an improved service from Lobley Hill Road to Newcastle with a Bus at a combined frequency of Every 10 Minutes if you included the "Coaster 1 (301)".

GNE could've also have done a service serving both North/South sides of Lobley Hill Estate:

95 - Newcastle (Market Street) - Gateshead Interchange - Bensham Court Flats - Team Valley Maingate - Lobley Hill (Beechword Gardens) - Lobley Hill (Romanwood Gardens) - Lobley Hill (Rothbury/Meldon Gardens) - Lobley Hill (Gragside Gardens) - Lobley Hill (Malvern Gardens) - Lobley Hill (Moorfoot Gardens) - Lobley Hill (Chiltern Gardens) - Team Valley Maingate - Bensham Court Flats - Gateshead Interchange - Newcastle (Market Street)