Electric motors are now capable of >90% regen, so the braking energy argument against short stops doesn’t work anymore (and the energy during motion strictly less than a rubber tired vehicle with a worse aspect ratio so long as the trip is no longer).
The amount of rail needed for short distance distribution networks could still be prohibitive in regions designed for road though. Even then one could still argue that the total infrastructure costs are lower by moving the destinations slightly given how much roads cost to maintain.
Roads always lose money, so that’s still a win. Travel speed and coverage may be a limiting factor though.