This is mostly true, but:
1. "Frequent traveller" programs can take some of the pain out of the price, just as they can for flying; and, as msandford (https://news.ycombinator.com/item?id=12663241) points out, it's not entirely unreasonable, if you're optimising for comfort (since it's not for speed!), to compare the price of a coach seat on a train with the price of a business-class seat on a plane.
2. Short-haul trains will usually beat any possible flight; and even relatively long-haul trains can be competitive—an upcoming trip from Michigan to Maryland for my brother's wedding is $81 one way.
> … and can have their schedules totally screwed up because they must give way to freight trains.
This is also true, but, I think, misleading; it's not as if planes always run on time. At least, when the train is stuck, you're on the train, which is nice and comfy, rather than in the airport, which is miserable!
I have also never been bumped from a train due to overbooking, and once had a lovely train ride that simply plowed through snow falling thickly enough that most flights were grounded.
I was once delayed on an Amtrak train for 24 hours. Twenty-four hours, sitting motionless on a siding in the middle of nowhere. A professional cyclist could have beaten me to my destination, even with one 8-hour stop to sleep. Never again. Even a coach bus would be preferable.