Irish, that reasoning seems wrong. It's not like the people at the intermediate stops don't have frequent service. And, it's not like they will bolt for Lakeland Bus if they see a train passing their station--as long as they get good service.
Looking at other commuter lines, it seems if you have enough business to run trains more frequently than every 25 minutes or so, it pays to run each train to a cluster of stations. That way, everyone will get some express trains, and no one will have to wait for long. I used to commute on the MN Harlem line, and it was like that, with each rush-hour train stopping at a few stations. The other MN electric lines are similar. The SP service out of San Francisco ran that way, "back in the day." And, of course, NJT "super expresses" take more time than DL&W every-stop locals did. When I was looking for a house a few years ago, I passed up the M&E because its trains were just too slow. In fact, if NJT ran more real expresses, they would reclaim some traffic from Rt 80. If they don't run faster trains, Martz will still get most of the commuter business even if the Cutoff is re-opened. I'm kind of puzzled that NJT management has this blind spot about speed. What would get them to wake up and smell the coffee?