I'm not sure your range of experience covers California (not to say you haven't been there, just that you likely don't understand the place). I would ride that L.A. to S.F. train as my preferred mode. And every single person I know who lives in California says the same thing. Since I grew up there, and maintain many ties to the state, both North and South, I know a lot of people from varied backgrounds. What we all understand is that the one hour flight from LAX to SFO (or any of the many regional to regional options) requires a minimum of five hours for the total trip. I know people who will make the 400 mile drive rather than hassle with the airports/TSA/car rental/traffic issues when flying. But they don't like spending 8 or 9 hours driving in heavy traffic. They will take a fast train if it is available.
As for the overnight service, I'm not talking Orient Express, though I can see a market for that, too, as a transcontinental. What I mean is just what I described, something that busy people would use as a more comfortable means of making the trip, that requires less of their active awake time than flying.
Henry -- I must admit that try as I might I don't understand Caiifornians although:
1) my daughter got her Law Degree from Peperdine,
2) she married an Angelino (his parents live in Malibu) and they lived in Santa Monica for several years before moving to Texas
3) I've also spent some of my most pleasant traveling on business in Calinfornia from SF to SD with lesser good times in LA area and probably the best time in SB
4) I lived for one summer in Santa Monica while I worked at UCLA and commuted on Santa Monica and LA buses
5) I've commuted up and down the SF peninsula and in SV on BART and Caltrans
6) done some hiking in the mountains
7) presented seminars and keynote talks at major conferences and exhibited in SF, San Jose, Anaheim, LA, SD, LaJolla
8) Met the real TopGun
9) done some things at Lawrence Livermore (you didn't see me say that)
10) seen things through some big telescopes
11) had a friend and colleague who grew up in LA and vaguely remembered the Red Cars (inter-urbans)
12) and once arrived in LA on an early Tuesday PM, visited the La Brea Tar Pits, did my business and was back in Boston Wednesday PM -- perfect -- no jet lag
13) Ran through SFO (like OJ) trying to cactch my flight to Boston after returning from Asia
14) almost was hit by a subsiding wall of mud on the 101
15) Met the inventor of the Vector (the car in "Rising Sun")
16) really enjoyed the Gamble House
17) was not impressed by the original Getty
18) traveled to some obscure rural area full of nut trees to talk to an investor
19) really enjoyed the Huntington Museum and especaially the cactus gardens
20) accidentally drove down the 405 in SD when it was closed for the SD marathon -- talk about a post Appocolyptic view
21) landed at LAX while an earthquake (small) was in progress -- a week or so later I was in the UCLA Student Union restaurant when a fair sized one hit in the San Fernando Valley and made the water in my glass dance
22) got lost in the fog driving through Sorrento Canyon
23) heard the sound of 10 millon cars up on Mulholland Drive
24) was invited to go skinny dipping at Big Bare (err Bear) by my landlady in SM
25) Heard the iconic "Ok pull over and take out you Driver's License") from a motor cycle cop in Westwood -- only problem I was j-walking -- I even traveled the court to pay my $9 fine
But -- I still don't claim to know why they do what they do -- although I love how they have a 2 letter code for every city that matters
Oh -- the reason for this ramble -- I landed at LAX got on a Embraer for San Jose and was told to evacuate the plane as it "needed to be rebooted" -- we eventualy got a second Embraer and arrived 1 hour late -- but a whole lot earlier than I would have on a train