Yes and no.
There's fare sensitive travelers, time sensitive travelers and value sensitive travelers. Fare sensitive travelers will always be a tough proposition for rail companies anywhere. These are the folks who will seek out rideshare, buses, etc. Very hard to win them. Likewise, those who are absolutely time sensitive will always fly. The real opportunity for rail companies is in those who are value sensitive. And usually they are putting an implicit cost/value on time saved from road or increased from air, against the cost added or saved with rail.
A lot of people assume that business travel is time sensitive. In my experience, it's value sensitive and part of that calculation includes the time of the employee in transit. At 5+ hrs for the train with low reliability, businesses will almost always choose air. At ~4 hrs, with high reliability, I think business would mostly choose rail. Especially, if the argument can be made that there are less hassles accessing stations than airports and the time onboard can be more productive. Unless, it's a day of round trip, for most businesses the extra 1 hr would be no big deal.