Reading on into some of the deeper links at the site ... they're looking at more than just ripping out the tracks for bike trail ... but the numbers for bike+rail are pretty huge. Just running a tourist train is the cheapest alternative, but is there as a throwaway - clearly politically unacceptable without a trail of some kind. So the real question they're considering (and that they should get input on!) is what kind of trail, and where the money would come from if they want to keep the rail with it.
Note that the tracks stop at Missouri Flat Road now. Here's what the end of track looks like chez
Google. The big place in the upper left is WalMart. The place near the end of track with a spur into it is (or was a year or so ago; looks pretty deserted in the current Google picture) a recycling outfit.
There's already a trail replacing the tracks from Missouri Flat Rd. almost into Placerville, and above Placerville to Camino. It's a nice trail. If a use can be made of the tracks, though, I'd prefer that they stay in place - again, what's feasible and how good a pitch can be put on to save rail AND trail, not just trail?