Bob - I agree with you about trying first to rebuild existing lokies. However, within that constraint the lokie has to fit the parameters of the line for which it is intended. Of course it should fit the gauge to simplify overhauling. It needs the power to pull the required consist of up the steepest grade and sharpest curves on the line.
Further it should resemble as much as possible the original locomotives on that line. SVRy had numerous lokies over it's many years of operation, so that should not be an issue. A locomotive that fits the criteria may not be available, and the road should not settle for just anything that can be rebuilt.
Although a rebuildable locomotive may be less expensive, to get a reliable engine with reliable appliances may get quite expensive. Reliability could be a real issue. I don't know for a fact, but one could speculate that getting a form 40 approval might be quite a task in itself. The Prairie on Georgetown cannot operate on several roads including SVRy because it does not meet FRA specs and would have to be upgraded with more stays and internal supports in the boiler according to knowledgeable folks.
That said, it is still good to dream and plan for a repro. At this stage SVRy members dream of 250/251 lookalikes with up to date construction. We have dreamed for years about a multimillion dollar extension to Philips Lake. We are getting closer and closer to that dream, so why not continue to dream big?
dan