[0] https://www.youtube.com/c/MichaelRSilva/videos (captions in Portuguese)
Many of these things would be solvable by solar powered cameras on 4G/5G/starlink. Vibration sensors in the tracks, transponders in the cars, wheels, engines, etc. We need way more signals than we currently have.
Rail utilization will certainly help at the margins, but only maybe one or two trains an hour. The real meat and potatoes is generally more tracks, and removing conflict points on existing ones.
I made no statements that the train would be locally self engineering using the cameras.
* the last junction you passed and how you exited, and
* number of turns of the wheel.
The issue is that rewiring junctions is very expensive, upgrading trains to be compatible is expensive, etc. Even more so if you cannot upgrade an entire network all at once, and you need to account for mixed operations with both new and legacy compatible systems.
The pressure to reduce crew costs means longer trains and less network fluidity; automating them allows much shorter point-to-point consists on the same infrastructure. As long as they have the right sensors they can run much closer together - even couple & de-couple en route (with some extra equipment).
The issue with networks is that it is impossible to roll out automation all at once, and the intermediate mixed automated/non-automated network is more complex and harder to do safely and reliably.
NYC has been moving to (theoretically automatable) CBTC signaling from mechanical signals. It's been challenging.
* The CBTC and mechanical interface has issues and constantly fails over the entire system
* The mechanical system is itself falling apart because it dates from the '30s, and is so old that the suppliers no longer exist and they source parts either from collectors on eBay or make it themselves, and this is also affecting the first bullet point
* Few modern suppliers of signaling actually sell fixed-block signaling that can handle the capacity required today, and even if they did, would it make sense to spend hundreds of millions or billions on a stopgap to CBTC, which will also cost hundreds of millions or billions?
Since many current systems do not meet those criteria (another comment mentions a “communication system” of writing down the day’s train drivers’ cell numbers on a note), I’d argue that any improvement towards an ideal system is a step up. We can’t wait for perfection.
None of the things you have described are "easy problems". In fact, they are pretty difficult! Systems need to be robust, interoperable, reliable, provably correct, fail safely, deal with surprising edge cases, have long service lives, and any number of other challenges.
In any case, all you've really done here is re-invent technology that already exists. In ETCS level 2, for example, the signalling system uses known-location transmitters on the track as references and the train calculates its position in-between using on-board sensors like axle encoders, IMUs etc.
This is just a short article about an interesting new technology for providing the "train position" component of the system by building a magnetic map of the rails. Pretty cool idea – if it's accurate enough, it provides a more robust source of absolute positioning information, which is key to allowing the rollout of realising "moving-block" approaches in which trains' movement authorities are updated in real-time, allowing higher traffic density.
And it's not like nobody's thought about GPS/GNSS either – there have been extensive projects looking into the feasibility of those systems. The Russian ABTC-M system uses GLONASS, and I'm sure some implementations of PTC in the US use GPS. But again, these are difficult challenges incorporating lots of different technology and you don't solve them overnight.