Having been to a number of heritage railways in the UK, I think the thing that stands out is the word Heritage.

Here we have tourist trains, steam trains, etc. Some sort of small driver, big boiler, logging engine pulling a random assortment of old commuter or streamlined heavyweight cars barely touched up to accommodate some passengers. Board from some gravel platform after buying your tickets in the ubiquitous UP CA style caboose.

On the Severn Valley, I stayed the night at an old Inn blocks from the station after having drinks at the Great Western Pub the night before. I buy my tickets from an agent sitting at the original ticket window of the Bewdley Station. Train comes into the station heading Northbound, while a Southbound train meets it. I get aboard, we cruise up the Severn Valley, stopping at a few smaller stations until we reach Bridge North. Here the loco runs around and while doing so I can pop into the station tea room for a quick bite during the layover. Or I can explore the town and catch a later train. Meanwhile, on nearby tracks, a steam loco or diesel is idling away awaiting assignment.

The atmosphere screams 1930-1960s. I have yet to see something like that in the states that isn't corny old west. Granted I haven't been to Scranton or Jamestown.

Question is, would something like that be viable in the US, even if it had to be manufactured like Downtown Disney. A station, a 'main street' with store fronts where you could go in and buy lunch or ice cream, vintage vehicles, a SP P8 pulling a rake of SP commute subs. Would it be worth it, or would we be just as well off throwing some Behr house paint on a passenger car, lightly dusting the 80 years of grime off the interior, and call it heritage while taking the tourist dollars who may not care either way.

The UK has been described as "A Nation of Hobbyists". Once upon a time, when I was younger and getting involved in diesel locomotive restoration in my teens, my father could not fathom why I would spend my time "fixing other people's trains". He was never a man of much principle or hobby, but I see this sort of thought process in many other people I speak with.

This is already possible at Illinois Railway Museum.
Pennsylvania Trolley Museum is close to what you describe minus food service.
Southern California Railway Museum has a street for the narrow gauge LARy cars.
Cumbres & Toltec boards in downtown Chama from the original train station where you can walk across the street into downtown Chama to get your ice cream.
I could go on with this list.

With the exception of C&TS, the museums mentioned started small as gravel parking lot operations and grew over time to establish the atmosphere and services you are seeking.

~Wesley

I wonder if it’s tied in with the way that people of both nations feel and/or show pride. Caveat, of course, that this is something of a generalisation, but there’s some broad truth to it.

I’m an Aussie, we’re similar to the Poms in that pride is usually internal, it’s not something we really make obvious. While we can be proud of our country, our museum, our family or friend group, it’s reflected in a pleasant internal feeling, and it can often be manifested through working to make things better.

It seems to me that American pride is something shown externally through signs, flags, and other ways of messaging to others. That’s cool, it’s understood and accepted. It’s just something that would come across as odd in much of Australia.

Neither style is better than the other, and both styles can motivate people to great achievements. I’m proud of being part of my local rail museum group, set up in Australia’s largest remaining commercially-active roundhouse, at Junee in New South Wales. It’s a small group with static exhibits, but displays locos and rolling stock as operated from the 1890s to the 1980s. It’s a lot to be proud of, but there’s a lot we need to do.

I think some of us are missing the small details that make this work - the historic ticket agent, the historic tea room, the ability to get on and off at multiple stations and not take a pre-determined tour... I think this is what the "atmosphere" is referring to.

There are a few places that can come close in the USA - Strasburg is one, with the historic depot and the ability to get on and off at Groff's Grove.

Illinois Railway Museum especially on an event day where they have trains leaving from multiple stations, plus the trolley loop, and the trolley bus - they are slowly building a "Vintage Main Street" as well.

The Henry Ford Greenfield Village would be super close if it wasn't for the theme-park style open air cars they use.

It might not be the case right here, right now, but the closest I can think of to this would be what Niles Canyon aspires to be in the future. Authentic SP coaches and SP steam/diesel along their scenic route. Historic SP stations along the way, an SP roundhouse when they manage to re-build it. Its a bit unfortunate that the station in Niles is on the wrong side of the tracks, but it would otherwise seem like the atmosphere is somewhat there, or will be in the near-ish future.