From the perspective of limited resources, replacing the route 296C by 796C would be a suitable decision. Notice that Bus fee is only guarantee a space to get on a bus but not for a seat, so there's no excuse to take no seats available on a bus as a reason of declining the cancellation of the route 296C.
However, the route 296C and 796C are actually doing different jobs. The route 296C is actually doing something much far away from serving the Kowloon West to Sheung Tak Estate. For example, to assist the route 296A, and responsible for a huge amount of short-distance passengers along the route, etc.
Consequently, it is suggested to do further research for the possibility of replaceing the route 296C.