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I strongly suggest people watch the PBS miniseries from earlier this year on the airline industry. It really is as complex as it is massive. That's a big part of why I push for alternate means of travel for shorter distances. Save the complexity for cross country or international flights and charge accordingly.
I think the smartest way to approach it nationally is to work out a meaningful formula that places time as the biggest factor. With the added time air travel takes, figure out where the threshold is for high speed rail, driving, or whatever and drill that into people's heads while adjusting the infrastructure to match it. If the difference in time ceases to be statistically significant at 500 miles, then build for trains to hit the major travel points that are less than that. If it's 1000 miles, then aim for the trips that are less than that. Find that level and build a multi-modal transit system that makes sense.
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