There is a demand for "first-class" service. What is being proposed is not aimed at the average person, but at those who demand comfort and service and have (somehow) the means to pay for it. I would be really dangerous if I had enough money to spend $500 a day riding trains without giving it a second thought.
Perhaps what Silverton should take note here is that the DSNG has a desire to additionally market their railroad to a high-end clientele. If DSNG thinks there is a demand for this service and they can make $$$ doing it, don't be surprised if DSNG doesn't open a Hotel, Lodge, Dude Ranch, etc. in the Silverton area at some future date. Until our economy corrects itself (or just plain crashes), the rich keep getting richer and the middle class keeps joining the poor.