Meanwhile in Britain in the 1960s, this cost-cutting closure of local rail lines did happen: https://en.wikipedia.org/wiki/Beeching_cuts ... at a time when the trains and rail infrastructure had been publicly owned for about 15 years already. It doesn't dispel the incentive.
I’m not arguing a rail has never been closed. I’m arguing that being a small difficult market doesn’t exclude you from being served by marketed forces.
Did nobody ever operate rail to those cities again due to them being rural?
I have never heard the name Beeching spoken with more venom than in Wales, I used to live in Mid Wales and now I live in Cardiff. If I wanted to visit where I used to live by train, I'd have to do a multi-hour detour of a sightseeing trip around the West Midlands, deep into England. The Beeching Axe literally cut Wales in half and the consequences are felt to this day, even though there wasn't much outright salting the Earth to make sure the terrible decision couldn't be reversed as there was in some cases, the Welsh government doesn't have the money to reinstate the Aberystwyth-Carmarthen line which would deal with a lot of these north-south issues.
Also it's not just Wales where Beeching carried out intense vandalism of public infrastructure, the South West was severely affected too. Basically anywhere that wasn't London-centric suffered, which is the British government to a T regardless of the party in power. The general assumption was that private cars would replace the local trains, which as someone who currently doesn't drive for medical reasons really makes my blood boil. While perhaps not in intent, in effect the Beeching Axe was a profound kick in the teeth for the disabled.