Comparing EL freight vs passenger is not what was meant. The statement meant that back in 1970 railroad philosophies were to dump passenger operations in favor of freight operation. This was because new highways were prevalent, the airline industry looked very promising, and gas was cheap and plentiful (real scare was not until 1973 and after). Therefore there was, in the context of that era's business and social climate, nothing untoward about the EL, or any railroad, getting out of the passenger business. We look back on that today perhaps as short sighted by both the railroads and the governments, but that was the reasoning.
Today much has changed. Gas is not as plentiful nor as cheap; airlines have cut back drastically in their operations and services so that smaller planes are used at lesser airports, some services are gone completely, and the major carriers are near or in bankruptcy; the highways are congested and expensive to replace and maintain, there are places (like NJ) where it is impossible to build any more highway milage, and the pollution is dangerous to say the least. Planners know they have to steer away from highways and not rely on air transportation as the only means of moving people. They therefore are suggesting further use of rail capacities for passengers. Most all new (past 10 or fewer years) rail passenger services have proven somewhat successful from the Los Angeles commuter services, to the Maine Downeast service. As I mentioned, even the NJT Midtown Direct service started out ahead of where planners had thought and is still strong.
Getting to the 2800 proposed daily passengers you mention: much has changed since that survey was done. More people have moved into the Pocono area and to the west of Scranton who commute to the NY Metropolitan area (North Jersey to NYC); the highways have become more congested (I80, I78) so that even those who live in North Jersey can't use them effeciently; population growth continues; there are also more markets to be tapped by the service than just commuters and Scrantonians--there is a need for service into the area for recreation, etc. too. Based on the apparent present needs, the needs on the horizon, the successes of other new rail passenger services, there is a very strong indication that this will be a very viable project and worth the monies in todays dollars.
This is a project as much, if not more so, for the future than for today. And since NJ and NJT aren't footing more of the bill than east of the Delaware (East Stroudsburg) NJ taxpayers need not worry about its out of pocket costs. In fact the costs of not doing it are greater. And, by the way, I am sure there are some rail passenger services that I would not justify. Just right now it is the right thing to do for the future.