When I was there in the late 1980's , Mexico had an extensive passenger system. It was difficult to obtain seat space, though I was there around Easter , a big holiday in a catholic country. The last train I rode was brand new, and an attempt to improve things, with at seat meal service.
I understand bus service improved rapidly in the latter years, and ate into railway passenger patronage, still it is hard to see how passenger service shrunk to almost nothing now ( a few copper canyon excursions).
I have read that what George said was true, a condition of the USA railroads buying into the Mexican railroads was for passenger trains to end. What public opinion was on this , I do not know, but i would say a good number saw superior bus and air services, and said , oh well , too bad.
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, Rail travel & trip reports
The only train trips I regret are the ones I didn't take.