Amtrak trains (long distance) as hotel trains is what is done now. You pay thru the nose for "first class" service including meals and a place to sleep. People pay that gladly, considering the difficulty of making reservations for such service. The real difference is that, based on laws and rules, the train staff need to be competent and are paid somewhat decently. So the cost structure is high enough that even at the rates currently charged (which are fully comparable to airline first class if not higher) it can't make money.

The regional trains (up to 8-10 hour runs, but most trips are not end-to-end as is also the case for long-distance train coach service) have snack bars and a space for you to sit down and eat (or have a mini-conference, or just get out of your coach seat for a little while). The food service is roughly equivalent to the stuff you can get at an upscale AM/PM market. The price is high but not horrible, and the coffee is usually drinkable (at least on the California trains). That's the best you can get for "cheap" - i.e. not a cruise train.

On a true commuter train, you get no food service, and even a potty is hard to find.

Amtrak has always had at-seat food service in some Business-class trains. Improves the experience and minimizes cost and non-revenue seating. That last is what Anderson is probably trying to eliminate: non-revenue space and staff.