It will likely move rail lines out of high-value commercial areas and into residential areas.
Not exactly. It would also move them out of most residential areas. The plans I've heard about would use a few of the existing lines for freight service to still access the cities, but most of the traffic would be moved to bypasses well outside the urban areas. Those would run through rural or very low-density residential areas(multi-acre ranchettes or larger), because otherwise the cost and political opposition rapidly rises. They really want to avoid taking any more houses than necessary, for a variety of reasons.