Planes, Trains, and Automobiles

As I have recently moved near a railroad track it has occurred to me that we still use trains. What has escaped my knowledge is why. For the love it is 2008, we have telephones that get the Internet. Are trains absolutely necessary. And if they are, why are they so inefficient. It's like train and rail technology stopped with World War II. The only thing that should have stop progressing with World War II is the Great Depression and if you will recall your history, it did!