There is some method to this, and i have thought of it as well (as part of a re-working of the 'Canadian' Franchise), and as long as we have oodles of cash for upgrades to track and stations, there is some merit re service to the community.
However with the continuing improvements to come on HWY 17, especially after this winters record, a bus service run by Ontario Northland would make as much sense, certainly as a starter. And look, there is a service, although once a day. Perhaps upgrading that service to multiple buses per day to illustrate demand could lead to something rail based.