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Train fares are up to 30 times more expensive than planes in Europe
(edition.cnn.com)
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Well, 1960s had cars and people were using these for long distance travel due to the lack of other options. My dad, for example, drove his shitty car from Berlin to the south of Spain and back.
I think the issue may be split in two - for some, the younger and poorer, cost is the limiting factor - they are willing to put up with longer travel times but cannot stem the additional financial burden. For older and more settled people (which I am transitioning to slowly) and my parents are in, comfort trumps price at all times. They will take the fastest, most direct route. They would fly even if it cost 2-3x more (which, for them, it does since they will take the premium airlines over budget).
Going back to individual vehicles is, in my opinion, not a great solution. I am hopeful that we will find ways to have short distance air travel use more green options (electrical?) in the near-to-mid future, therefore eliminating the need to curb the undoubtably huge demand.