Would it have been a better solution? Probably, but the investment required (laying down the rails, land buyouts, copious use of emanate domain, political greasing of the wheels, etc...) has always been prohibitive. The gains would be shared between many disparate groups that would need to fund this together, taking years to decades for any ROI - certainly a longer time-frame than most publicly traded, quarterly measured, corporations can afford. At the least this would have required some government subsidization.
With driver-less tech around the corner, returns on this investment for any one company become even more dubious, and thus make it less likely to happen. I think the parent comment here will always get some up-votes, but that is as far as I see this going anymore. Maybe it'd go farther if we threw in words like 'Hyperloop' ;)