A large portion of the project is street running. You will not get a street running train in this state. As such, making it light rail would increase the cost exponentially do to ROW or tunnels.
True, street running is unpopular--but if it were rail being built, maybe it could be done in segments. The first segment could be, say, Airport (Blue Line) to Kendall, since that uses an existing ROW. With that first step done, work could begin on tunnels into Boston and a tunnel to Logan Airport. From there, more tunnels could be built, one at a time, to gradually bring the Urban Ring to completion.
Also, how much more expensive is a rail tunnel than a bus tunnel, if they're essentially of the same dimensions? Not only that, but rails carry far more people--it would be a better cost per rider, if not necessarily a better cost overall.