Earlier quoted context omitted.
Exactly. A huge part of these projects is proving to the public the value. So even a short, direct line is useful - as some will start to use it and then extending it becomes a simple "this thing we have is good, it should be good more."
But the short direct line might also not get built, if the projections show passenger volume will not be high enough to justify the costs. Passenger rail has high fixed costs and low marginal costs. Even with high-speed rail, you generally want to maximize the number of passengers rather than speed. Making detours to nearby major cities often makes sense, while stopping at smaller cities the route already passes thro…
Up until a few months ago, the plan was to create a new link between Toronto/Detroit/Chicago and upgrade the links between Toronto/New York City and Montreal/New York City. In this previous world view in which we were all friends, getting as many larger Canadian cities as possible connected to this rail network was worth the cost.