During the financial crisis, when Greenspan was approached for his comments on how it could have occurred when people were following his guidelines, his response was basically "Hummuhna hummahna." (paraphrasing, of course)
The use of railroads as the vehicle for Rand's vision was a reflection of her upbringing and the times, when railroads were just past their peak (1914+-). The mythical TT was a doomed concept from the start, not because of governmental interference, but because of the basic logic and economics of railroads. In point of fact, the railroads themselves attempted early on to switch passenger traffic to airlines that they owned. Boston-Maine Airways is one example I'm familiar with because of my father's work at Colonial. The government forced that railroad to divest the property in 1940 and it became Northeast Airlines. The railroads could not deliver people as quickly as airlines and were as doomed as transoceanic liners, through economic forces alone.
How many readers of Atlas Shrugged know that the real way the primary transcontinental railroad got built was by the U.S. government stealing (treaties *cough cough*) land from the native Americans and then GIVING it to the railroad companies (through a notoriously corrupt Congress) to provide them incentive for laying track and developing the midwest. If there was a Wesley Mooch, it was the railroad companies themselves, the Credit Mobilier, and all associated. Reality is different than fiction. The northern route was handled with more ethics, but that was not squeaky clean either.
Regulation of railroads occurred for many different reasons, just as regulation of airlines occurred, and attempts have been made to regulate the stock market. Follow pure capitalism to the bloody end, and you end up with one person in complete control. The government, finding one group gaining sufficient power to threaten it, will force changes. The motion picture industry got labeled "opinion maker" and regulated to bring it under control. Such is the nature of governments.
Rand's book, in that manner, was a whitewash of a dirty (and fascinating) period of capitalizm (Z intentional) in the United States.
"Your matrimonial bed issue is what all of us fans of Rand claim is the consistent issue held by critics: it's not the quality of her writing, which is phenomenal, but it's the moral that you dislike."
I disagree. Completely aside from her politics, her writing is stylized and not particularly "dense". I happen to enjoy the style of Sherlock Holmes stories, even though I was aware of their shortcomings as a teenager - ever work one backwards? You'll find the reader is never presented with enough accurate clues to independently solve the mystery, thus insuring that Holmes will always be seen as brilliant. The trick is subtle enough that most readers THINK they have been given all the pertinent information, even on a casual re-reading. Rand employs such tricks in "forcing" (as in magic tricks) the reader along certain lines of thought in her novels. Since many readers simply don't have critical thinking skills, and are overwhelmed by the repetition of theme and rhetoric, she gets away with her ruses. That repetition of theme doesn't translate well to film.
I invite you to re-read the thread, and follow the link to my blog post on Rand. She was an interesting person.