But yes, it is just a city bus on tracks. One that is more spacious, easier to get into, does not stink, is vastly quieter, has smoother starts and stops, and has a much smoother ride because it is on tracks. Oh, and it's also visibly permanent and will go only where the tracks go.
See, unlike streetcar nerds, I really don't care about mode choice. Frankly, I'll take whatever transportation mode comes my way, as long as it is fast, reliable and cost effective to increasingly smaller transit budgets. An on-street streetcar fails all those criteria: it's generally slow, unreliable in mixed traffic and costs an arm and a leg to build and maintain. It costs so much, in fact, that TriMet had to axe bus service in the suburbs but chose to spend money to expand the streetcar line south.
I don't have a problem with any specific mode, and I know of BRT, LRT, bus and heavy rail projects that all had a lot of merit and were good ideas for their time, but I would be hard pressed to understand why anybody would want to resurrect an on-street streetcar line for any reason other than misplaced nostalgia. Streetcars aren't rapid transit, and I don't see why there is a need to use anything beyond buses to provide slow, local surface service to a small neighbourhood.
In these discussions, some people invariably show up who are all free market this, and cheap buses that. And how buses can carry however many people. This paternalism is useless for planning transit that people actually want to use, and do use. And so it is useless for city planning that requires high transit use. You have to put aside ideology and take a look at what kind of transit people are willing to use, and how.
Well, isn't streetcar worship some sort of ideology?
Besides, people who don't see the economic rationale of building fetish trains come from all political stripes. There are free market spokespeople like Randall O'Toole and the Cato Institute, but there are also left-leaning groups that care about social equity like the Los Angeles bus riders union. This group was incensed that local bus routes in South Central LA were cut so that the LACMTA could build the very costly Blue line, which is kind of similar to what we're seeing in Portland right now. You can't just all pigeonhole us all as Milton Friedman types who are pro-car and therefore anti-transit.