We need a real national rail network, and a real national rail network service provider. This project should not be 100% on NJ and/or PA taxpayers. This is an inter-city project that connects Northeast PA with Northern NJ, New York City, and the rest of the national and regional rail networks. There are probably many more examples of service that could be enhanced or created if it were done with a national transportation focus instead of relying on regional and urban transportation agencies to fill in the lack of a real national system.
Ironically, a strong regional and urban rail network would enhance a national rail network, creating the connections needed to make rail transport convenient (compared to automobile or plane travel). So, NJT's focus should be on making the best regional network it can, enhancing and expanding service in underserved areas like Central and South Jersey. Anything more than that, like a train to the Poconos, should become the responsibility of a national rail service.
And therein lies the problem. Current political might is behind the automobile and plane travel. But, both of those forms of travel are unsustainable in the long run. Planes are limited by the size of the airport, and the number of gates available in the airport. There is little room to expand at most major hubs, and the cost of plane travel will continue to rise as demand continues to outstrip supply. People will retreat to their trusty automobile, which is also unsustainable long term. A 13 hour trip from New Jersey to Michigan seems doable, but when traffic increases in the long term, and highways are not able to be expanded to meet the demand, that 13 hour trip will turn into 17+ hours. Now you're talking about a hotel room for the night, on top of the gas, car wear/tear and additional time cost.
Eventually, the public will see how short sighted our politicians are. It may take a decade or two, but I believe that within a millennial's lifetime, we will see shovels in ground to make a more robust national rail network, including real high speed rail.
So, don't fret about the Lackawanna Cutoff. It will be put into use, eventually. Plane and car travel are not sustainable in the long term, and the public will demand a better transportation option.