> The capsule itself would need to be small—4.43ft (1.35m) wide and only 3.61ft (1.10m) high. No standing room
No windows, pod inside a metal tube, seats reclined with minimal head room. There's no rational reason to panic in that position, but many people will not be comfortable. Video displays might help, but only to a point.
The feeling to your body would then match the view too.
It's not clear how the hatch on a stopped pod would open between service points, if at all. So you're stuck in the pod, possibly with no lights or power either to the pod or the tubeway in the case of damage.
Rescuers have to enter at the station and travel some KM to the pod, how, by crawling? If they need a rescue pod, it would have to be lifted from the ground to the service door, so they need a crane now; that's more hours.
Then there's the small matter of air supply for passengers.