I think the C&TS is already FULLY under FRA rules, as an INTERSTATE Railroad that crosses public roads.
The 3rd rail connection is HIGHLY unlikely as long the rail line to Antonito “standard gauge” is still active, As much as I would love to see it, it just isn’t going to happen, Now if the “standard gauge” line is abandoned, then it is HIGHLY likely that it would happen!
As for friction bearings, they are legal as long as the cars are NOT USED IN INTERCHANGE with other railroads; I seriously doubt that you could interchange 3 foot gauge cars with standard gauge railroad!!
You can still see friction bearings on some class 1 M of W and what few cabooses are left! And as with any rule there are exemptions, the Ringling Brothers Circus train is one!
And there is a rule about OLD cars; I think the interchange life of a car is 35 years, which can be extended by the filling of forms. NS has some VERY old depressed center flat cars, of RIVETED construction, that date from the teens last rebuilt in the mid 50’s.,in M of W service.
Andy J