Why does Caltrain want electrification? Because it wants to operate faster and more service. Doing so would mean more people would use the service requiring less of an operating subsidy. The DMU's don't do that. Also, Caltrain would like to grade-separate the right-of-way to eliminate many of the opportunities for accidents, which is just what HSR wants to do!

So why would Caltrain accept a deal with you that says you must restrict service to what you have without increase in the future?

I don't think so.

By the way, Caltrain is proceeding with grade-separation on its own (witness San Bruno). It's only a matter of time before it comes to your city (Burlingame, Menlo Park, and Palo Alto).