Earlier quoted context omitted.
Musk wants to re-engineering both tunnel boring and how we use tunnels - the latter may not pan out but the former is useful regardless of what gets run through the tunnel.
Not necessarily. The key cost savings that Musk envisions boils down to "build tunnels that are too small to put existing rolling stock in," which means that if the proposed personal rapid transit system turns out to be like every other PRT system and not work well, you're left with a tunnel that is too small to be useful for anything else.
In hard rock you can use drilling and blasting across long sections rather than just the leading edge. Alternatively, a TBM needs to remove significantly less material.