Don't know about other areas, but where I grew up all the local and regional rail/trolley systems were privately owned. In the 19th century they made money with 5 cent fairs, but by the early 20th century they were marginal or losing money. Rail cars were not updated and those that survived were noisy, heavy, and uncomfortable. The lines that survived were the ones that the city bought and operate at a loss with heavy tax subsidy. My dad rode the regional cars and described them as "brutal."

As astetically attractive as streetcars are, buses give way more bang for buck, are more flexible, take less time to deploy, and don't present the rail hazard to cyclists.

Interurban rail is a better bet. Still expensive and slow to build, but it directly replaces freeways.