In the Japanese model the rail company also owns land around the station, so they capture more of the value of rail transport. Rail in the UK does not capture all the value it delivers, so subsidies would be a pragmatic solution.
That sounds like an excellent idea. However I think rail transport depends more heavily on quality infrastructure. If a state doesn’t maintain its roads well and allow potholes to develop, it is probably rare for that to cause a fatal accident (I’ve heard of potholes causing damage to cars but not deaths). But improperly maintained rails lead to derailments and deaths.