The quoted post somehow seems to miss the C&T's most fundamental problem: It's located in the middle of nowhere and just happens to have a roughly equivalent (from a tourist point of view) alternative located a few hours away, and in a more developed area to boot. I don't know that the C&T has ever made a really good argument as to why a typical family should ride it instead of visiting Durango and riding the Silverton train. Not being a C&T fan, and not paying too close attention, I figured part of the reason it tries to maintain a more "pure" railroad atmosphere is an effort to provide some degree of distinction from the more tourist-oriented D&S, though of course that could be mistaken.
Changing socio-economic patterns in the United States, whilst being a subject far beyond the scope of a single post, also need to be taken into consideration. Simply put (too simply, perhaps) the American middle class hasn't exactly been gaining disposable income during the past fifteen years.