My friends are all public transit fans, regardless of our origins, and I think this is very common among teens, twenty-somethings, and thirty-somethings like myself. As a generation, we strongly prefer riding transit to driving, and prefer train service strongly to buses. That said, we are price-conscious, and mid-distance buses are from half to a quarter of the cost of Amtrak.
In response to Amtrak, I say, "put your money where your mouth is." Get more cars (lease & lightly rebuild the retired NJT Comets), then get another 10 motors (AEM-7, HHP-8, more ACS-64s, whatever) so you can offer true low-cost service NYP-WAS. As long as the cars have Wi-Fi and outlets, luggage racks, and semi-comfortable seats (non-reclining is ok! Seriously!) with décor that isn't too obnoxious, I'd be satisfied. Even better would be adding a full café car with snacks and beverages (including wine & beer), as a new profit center with a captive audience of a few hundred bored twenty-somethings.
As for the commentary about having to severely discount fares, that's the whole point. As long as Amtrak offsets the allocated cost of operation of the extra cars (or an entire extra train), anything above that is gravy.