The nice thing about the crane idea is you don't even need a lot of cranes, you just need a lot of stackable mass. The rail idea needs a lot of movable mass on wheels, and a lot of siding to store it on. It seems like the rail idea would need more land as well, plus it only works on hillsides.
Keep in mind these will be grid-tied too, so you only need the power to be smoothed across the entire grid; it doesn't have to be at a single location. So grid storage batteries elsewhere could play a role too.
I guess the only advantage the train approach has is if you can get a lot more height out of it -- imagine an elevation difference of 1 km from top to bottom, way more than you could get with a crane. This still uses a lot more land though and needs a lot more rail; just having several crane installations might still be simpler and use less land.