Unsubsidized rail systems would fare well against unsubsidized highways and airports. Just like they did prior to the 1920’s when the government started subsidizing highways and airports in direct competition with privately operated railroads.
When every airport and every stretch of highway operates sans public subsidy I will be thrilled to invest in rail because it is already a proven fact that rail can outcompete other modes when they’re on an equal footing.
Even with massive subsidies (direct and indirect) to highways the railroads still outcompete trucks in shipping freight.
On trips of over 500 miles airlines will still be more popular than rail (depending on if the TSA starts random cavity searches or not) but on trips of 500 miles or less HSR is very competitive and it becomes more so competitive if subsidies to the airports and the airlines are eliminated.
Ok. I'll take a toll road and you can have an unsubsidized rail system and we'll see who can make more money :-)