Cuz of all the issues that come with laying rail lines. Eminent Domain has somehow become even more unpopular as of late. And guess what building rail lines requires?
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Frequently, blowing holes in hills and mountains so you can get that 3% gradient.
Doesn't Europe have an extensive passenger train network?
Also, I recently rode on Amtrak for a long trip from Columbia, SC to Baltimore, MD. This was my first time on any kind of train other than a subway or metro line. It had its drawbacks (incredibly long travel time and delays), but I always felt safe, and I had a lot more room than I would have had on any flight. The major drawbacks where the seats were somewhat uncomfortable and things like that are largely due to the fact that the cars were pretty old, and not inherent to train travel if it was properly maintained. The cost was much less, and the free parking was such a great bonus.
Europe has an extensive passenger train network, but most of it is not high speed rail.
I looked on travelling from Madrid to Paris and it takes 2 hours if you fly (and then some time before for travelling from the city center to the airport, luggage check-in etc.), 11 hours with train and 13.5 hours with car. I think there are high speed rails between Madrid and Barcelona and in France, but still it takes that long time. The cost is similar.
Trains are really good but they have limitations, each type of travel has its advantages.
When I checked how long distance it was between Columbia, SC and Baltimore, MD I realised it was much shorter than Madrid - Paris. So I checked Munich - Paris instead which is only a 10 km longer than Columbus - Baltimore. It takes 7 hours with train and 8.5 - 9 hours with car. The flight takes 1 hour 35 minutes but the estimated time for travelling from central Munich to the airport, transfer time, flight, transfer and travel to central Paris is 5 hours.
The only national passenger train service I know of is Amtrak, which shares its tracks with freight carriers. So the current infrastructure isn't designed for high-speed rail and freight carriers usually get priority.
Also, The US is really big, so everything isn't a short train ride away from everything else. If I wanted to visit the Grand Canyon from where I live, it's over 2,000 miles away. That's 30 hours of driving just by car.
freight carriers usually get priority.
They're not supposed to. Passenger traffic on Amtrak should be getting priority but the rail lines basically say "fuck it" and do what they want.
Train infrastructure is so underfunded (thx oil) that you can still get the fingering at most train stations for a really reasonable fee.
Something something Hungarian National Railway fucking useless once you go further than a 100 kms from the capital city.
Are they stupid?
(Yes)
I fly because it's fast, not because I like airplanes. Even the fastest train is way too slow to replace a plane for a long-distance trip. Then for shorter distances cars win out because of how convenient they are. There's no niche for passenger trains except for commuting into urban areas with no parking.
It doesn't help that in the USA train tickets seem to cost more than plane tickets. I think I'd still usually fly even if the train was free, so I'm certainly not going to pay extra for a slower method of transportation even if it is a little more comfortable.
I live in South Korea and HSRs are pretty much the only mode of (intercity) transportation that is relevant. Buses take too long, planes are expensive, while HSR(KTX)s are marginally cheaper than buses and take about ⅔ of a time.
Of course, our country's much much smaller than US/Canada so even the farthest lane takes only about 2.5 hours. It's pretty cool.
Dane here. While I love trains, they are a) more expensive than flying in almost every long distance scenario, and b) take much longer. We are trialling sleeping trains but reception is mixed and capacity limited. People don't like to waste an extra 2-4 days of their vacation on travel. Especially if they're paying more for that privilege. I should note that this isn't an issue of imbalanced subsidies. The EU subsidises air travel (in many ways) to the tune of around €30–40 billion annually depending on what you include and what you consider to be a "subsidy." Using similar criteria, rail is subsidised to the tune of €40–75 billion per year. So rail gets a lot more investment despite it serving 16% fewer travel kilometers per year in the EU than air travel.
The thing is, if even we can't make it cheaper and faster despite our relatively high population densities and high rail subsidies, I fear the case is much harder still in the U.S. My personal position is that trains are excellent commuter alternatives, and should be liberally built and subsidised in all dense cities. For longer travel, there is no substitute for airoplanes.