Of course they are when the concept of market demand is considered. It's a matter of economics.
Automobiles and airplanes are far more efficient in supplying what the market demands. The fact that the iron horse may be more efficient in supplying a service that is not in great demand is irrelevant.
There is also a difference between price and cost. The train may have a cheaper price, but a higher cost in time:
LA to Chicago (buying the ticket today to leave today):
Amtrak
Duration: 42 hr, 15 min
$287.00
Southwest Airlines
Duration: 4 hours
$391.00
I don't know about you, but 38 hours of my time is worth more than 96 bucks. And I don't have to buy food on a four hour flight.
Not only that, but SW has eleven flights today, while Amtrak has one!
(One departure, not one flight. BTTF reference)
The fact that the iron horse may be more efficient in supplying a service that is not in great demand is irrelevant.
Amtrak heads for ridership record in 2010, chief says
Train ridership between Vancouver and Seattle exceeding expectations
Metro ridership spiked on day of Glenn Beck rally (510,000 riders)
Passenger rail is a growth market and demand is increasing.
Lobbyists for the Airline and Highway industries are in denial.