I agree with your statements. 
Now, the politicians will say what they think they think will get them elected.
But any new termination point that the results in significantly less-than-expected ridership, will be pointed to as failure in the future. That may be many years out, so maybe nobody cares. What is worst to hear- "Hawaii built a rail, it ran out of money, it is a white elephant, etc." or "Hawaii built rail and it went way over-budget"?