Though I consider myself a staunch "railroad preservationist," I'm going to step on some toes and say that the "conversion" of the Creede Branch to a tourist train is a poor idea, both from a business and a preservation viewpoint.
There is a serious question as to whether the San Luis Valley can support another tourist train. Antonito loadings on the C&TS are consistently weaker than Chama. Certainly, a Creede operation would be somewhat parasitic on C&TS's Antonito passenger count.
How successful a Creede train would be is problematic. The line is paralleled by highway its full length. The scenery, while pleasant, is not outstanding. Of course, the cost to "narrow-guage" the line (assuming the 169 is used) is huge. Even without a gauge change, the line has not seen a train in over 20 years; it is in poor condition.
In my opinion, it would be far wiser to negotiate for a restored 169 to run on the C&TS. (Alamosa has always had a strong emotional tie to the line west to Chama.) As for the Creede Branch, maybe the Friends should approach the UP with the idea of securing a donation of the Creede Branch rail to the C&TS. I believe much of it is 70# to 90# rail that might be very useful to the C&TS. How and who might salvage that rail from the Creede Branch for use on the C&TS could be a matter of discussion.
I hate to see abandoned railroad grades, but--save for a sudden revival of mining in Creede--the South Fork-Creede portion of the Creede Branch has no real future. Unless, of course, they rip up the highway from South Fork to Creede. Fat chance of that.