The most blatant admission of what was happening in the NYC area came out a couple of years ago when the project for a third tunnel under the Hudson River was scrapped (due to lack of demand); the supporters, primarily interested in decades of workfare jobs associated with the project, pointed out that people might need it for not work, but to SEE A BROADWAY SHOW.
I would disagree that there is lack of demand for additional Hudson tunnels. Spend rush hour at Penn Station or the Port Authority bus terminal and you’ll see what I mean. The real issue is that NJ and NY can’t get their act together but I believe Trump’s infrastructure plan will get that much needed project moving forward. The existing rail tunnels are aging and could fail soon, which would be a nightmare for NJ commuters.
I have it pretty good commuting from Connecticut. Metro North is well run and Grand Central Terminal is a model of efficiency compared to Penn.