Instead of new thing might work
Would be better to have more details and get to this change should work.
Are those just pretty pictures or does it work now?
What can it do now?
What controls the engine now.
How is track wired now.
More details the better.
If the engines can not be changed, need to know what the engine needs to work.
What is it using now.
You stated that
DCC is out of the question unfortunately as the locos are all hand built (about AUD$500 each) and have no space inside the resin bodies to fit the DCC components - this is the first option I looked at. The smaller N gauge trains are even smaller inside.
Some motors do not like some signals and long term use harms the motor.
The more details, the lower the chance of harm.
Look at big picture
You want to control old engines.
You want to update old control system.
Do you really care the how if it works if new control is better then old and does not harm engines?
Look at simple led's for example
One bit can control on or off.
With 3 bits and RGB color led you have 7 colors
With 3 connections and RGB color led Three PWM signals gives you lots of colors.
At some point with lots of RGB color leds it's cheaper and better to use special led controller chip.
Final step is
The APA102 is a RGB color led with internal controller chip.
The controller chip logic is built in a way that lets you have long strings of APA102 with out needing buffers.
If you watched that video, it uses 4 8 bit values to control led.
The APA102 uses two inputs for control, data & clock.
The WS2812B RGB led uses one signal where time and level controls led.
So back to engine
Safe for engine motor could be a DC voltage with positive one direction and negative other direction.
So a lot of details of what exists now is good first step.
Power source details all the way to engine.