I am unclear the problem with removing unprofitable routes and privatizing Amtrak? The gov't doesn't need to be "helping" it to the degree it is and if private business can do it better why not give it a shot?
Let's see, wasn't the reason that Amtrak was created was that private business was unwilling or unable to provide said service for the larger system? What exactly has changed? What basis is there to believe that private business is ready to provide a nationwide network? Should we perhaps consider privatizing the Interstate roads too since private business appears to be so eager to jump into the relatively high risk low or nonexistent reward business, as the airlines re-learn that lesson every day?
If it can be done economically successfully then there is no reason to think private industry can't do it.
Here in Indiana we have privatized our toll roads to a French company. Made billions off the deal. We have privatized our parking in the city and such. The more burden you can reduce from gov't the better. And I am not saying the gov't can't help, but right now Amtrak is not operating anywhere near what it should and the gov't has no incentive to improve it.
You do realize why the railroads were getting rid of passenger trains, and many of their other freight rail lines disappeared too. It was a mess, and many railroads, went bankrupt in the 1960's. But why was that? I'll tell you that it was massive government intervention, and overregulation by what was then the ICC. The erosion started before even the Interstate Highway system was planned.
So what do you get when the government heavily subsidizes one mode or transportation and turns around and heavily taxes another? One will eventually fail, which is pretty much happened. All the streetcar, transit lines, and railroads were for profit entities that used mostly private money to built their track and infrastructure. About the only government assistance they got were land grants, but in return, the railroads had to pay taxes on that land.
Highways, even toll roads were built by the government or at least planned by the government. Highways don't pay taxes on the land they use. I'm honestly not sure if toll road companies pay. If anyone knows, please tell us.
So if your problem is with government, go back and blame the government for driving the railroads out of business in the first place. Until government gets out of the highway business, no private passenger rail operator will make a profit. Government got us into this mess in the first place, and its only going to take government to get us out!