Agreed, Dan, with the D&RGW situation. I doubt very much that the narrow gauge would have lasted longer than it did, even if dieselized. Another good point for keeping it steam operated is that they had plenty of locomotives to cannibalize for spare parts since they likely would need fewer and fewer in operating condition as time wore on.
You raise an interesting question regarding the D&RGW's contacting EMD for a proposal for custom ng diesels in the early 60's instead of GE with its readily available three-foot designs. EMD's units would very likely have cost a good deal more than GE's, which makes me wonder if the D&RGW wasn't using that as a ploy to assist them with abandonment.
Can't comment about the SP.
Ed