Interesting, might just have worked if Beeching hadn't damn the railways to hell.
The problem I see with rail at the moment is a) overpriced and b) overcrowded and c) inconvenient.
So what you need is a cheap and frequent rail service that runs to where you need it. That is just too damned expensive to provide unfortunately. Plus, even if the infrastructure was there would it be profitable?
They seem to make it work in most other countries. Not saying I know what the solution is but they did a comparison recently of the commuting costs in the UK, France, Germany, Italy etc and the differences are frightening. Presumably their rail networks aren't losing money hand over fist?