Mitch's two Danneman shot exemplars are rather silly responses, a charity train and an occasional luxury train. Hardly examples of intercity transportation in competition with air travel.
The FEC example is more serious, it appears; first I know of it, thanks for the link. Interesting stuff, good luck to them. Don't know the specifics that make that operation potentially profitable (lack of freight, existing line, so key infrastructure and/or land paid for?) when not profitable elsewhere.
Don't see the case for a Class 1 to do it. Maybe in a few identifiable places, if they had interest in what today would be considered not part of their core business. National network? NO.
Here's an assessment of LA-LV, done in 2007. Haven't read it. Haven't heard of any eagerness on UP's part.
http://rtcsnv.com/mpo/plansstudies/D...Assessment.pdf