Commuting Boston Student
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ARC was simply for NJ Transit, wouldn't have connected to Penn at all, and would've built a wholly separate terminal down the street so every single NJ train could get to Manhattan instead of only a subset running through with most turning on the NJ side. The goal of it was to separate commuter rail operations from Amtrak so Amtrak had the existing tunnels to itself.
The Gateway project whacks the new station and realigns everything into a track merge right outside Penn. Would require Amtrak to be segregated to the east-side tracks of the station since they'd be primary user of the new tunnels, and the junction would be a little bit of a delicate dispatching dance...but overall it serves a lot more uses for a lot more stakeholders and doesn't waste extra billions on the separate station only one party will use (of course, they'll just waste those $B's on the Moynihan Station annex onto Penn...but that's a different matter).
Substituting Gateway for ARC was the correct call. The pointlessness of having single-use stations was a problem. The way Christie went about canceling it was kind of bullshitty, though. There were sounder ways of justifying it than he used (i.e. raid the fed $$$ from the project for the state's highway fund), and be a bit more rational about it than getting angry for getting angry's sake. But...whatever. Waste and all from the stoppage Gateway would be a better deal in the end. Plus that new tunnel would actually allow Amtrak to use full-size bi-levels on the NEC for the first time in history.
I thought that the bridges and the fact that most of the NEC is already converted to high level platforms are the real obstacles to running bi-levels on the NEC?