Part of thinking about this plan led me to thinking about interchanges. With such short trains, it's possible to mix chain and block signals, with end-blocks inside the interchange that don't cause deadlocks.
Here's 1/4 of the interchange (just rotate and paste 3 more times to make the whole thing):
Here it is with four trains, all with green signals ahead and open cross-paths behind:
There can actually be two more trains in there, at the bottom turning onto the diagonal and in the upper half of the diagonal. The entire interchange can have as many as *24* trains fully inside it at once.
I do not think there are any deadlock conditions for this interchange.
Blueprint string:
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