It is hard to see that most people would prefer to use a train than a car to travel between cities unless they were going from a place close to a station to another place close to a station. So maybe the population might be simply democratically making choices to not invest in this because it goes against their preferences - instead of them being "deluded".
A different thing is intracity public transportation, like subway and bus systems. In many cases, I'd rather take the subway than use a car. But I lived in a very high density city, and it would take decades, if not over a century, to turn Dallas and Houston into high density so intracity systems would be convenient.