The fact that the iron horse may be more efficient in supplying a service that is not in great demand is irrelevant.
Amtrak heads for ridership record in 2010, chief says
Train ridership between Vancouver and Seattle exceeding expectations
Metro ridership spiked on day of Glenn Beck rally (510,000 riders)
Passenger rail is a growth market and demand is increasing.
Lobbyists for the Airline and Highway industries are in denial.
Record ridership does not necessarily mean that the public wants rail over air/highway.
Vancouver to Seattle is an example of the niche where rail might be successful: too short for air travel and a bit long for a car ride. I say remove the subsidies and let the market decide.
Glenn Beck rally was a one off event. Irrelevant.