SFMTA's train system running on floppy disks; city fears 'catastrophic failure'

What is weird about this?

If a business fails to perform well, its customers can choose another provider, and the business will have to improve, or else it will fail.

If a government fails, what recourse do its "customers" have? Wait a few years for the next election and hope that the truth about the government's poor performance wins out over the propaganda, and hope that the citizens vote in competent, honest officials, who might gradually make improvements, despite having to work through non-elected officials who are difficult to replace for incompetency? How often does that happen? And what if the officials in question are merely appointed by those who are elected, and thereby insulated from accountability by several levels of indirection? What recourse do the "customers" have then? Can they choose another "rail provider"?

The private sector has natural consequences for failure and a natural incentive to excel and be efficient (certain circumstances, such as monopolies, notwithstanding). The public sector is heavily insulated from consequences for failure and inefficiency.

That doesn't mean that everything should be privatized. It means that we shouldn't be surprised when a service provided by the public sector fails to perform well or efficiently, and we should carefully consider what the government ought to be responsible for. Also, we should make it easier to hold government officials accountable and replace them for incompetence. If someone wants the security of a public sector job, they ought to be held to the highest standards.

The lack of accountability happens because the government is not allowed to build up the in-house expertise they'd need to manage projects like this, because of this bizarre American idea that government=bad private=good. So the government agencies end up having to outsource absolutely everything - and not only is that expensive, it's also doomed to failure, because understanding and accountability by its nature can't be outsourced. And that's only compounded by a lack of trust, low-bid rules and the like.

If you look at the entities that have actually managed to get stuff like this done (which is something most developed countries around the world manage), it's not private industries, it's governments - but governments that were enabled and trusted to build-up effective in-house teams for doing large projects.

"Which way do I go?" orientation signage in the Boston subway system has been less than wonderful. A lot of "the obvious thing needed here is ..." not happening. Places you could stand to help confused and grateful tourists. So tempting to do a self-adhesive-vinyl signage project. And then the DNC did.

When the Democratic National Convention came to Boston (2004), the subway got a lot of nice "which way do I go? what are these stairs? if not these, then where?" temporary orientation signage. It lingered afterward, with some becoming permanent signage, and others puzzlingly not. Such an event involves massive interdepartmental communication, tight timelines, altered incentives and constraints, and additional resources. Some of the altered communication channels are said to have persisted. I might be interesting to look at events where things are "shaken up", to better understand the steady-state tangle.

Japan's transit is private and semi-competitive. (there are 10+ train companies in Tokyo), (4+ in Kyoto), I haven't counted Osaka's

It works because the companies own land and facilities around every station. Grocery stores, office buildings, shopping centers (stores at many stations), apartments, etc. This creates a virtuous cycle where the more riders the more people use their other services and visa-versa.

As for semi-competitive, at least in Tokyo, Osaka, and Kyoto there are enough lines that you often have a choice. For example Tokyo (area) to Yokohama there's JR, Keikyu, Tokyu, (3 different companies). They have slightly different routes so if you're closer to one you might take one or the other but they do advertise trying to get you ride their's over the other's. To Hanada there's Keikyu and the Tokyo Monorail (it's own company). To Narita there's the Narita Express (JR) and Keisei (a different company) as well as local lines from both. Same in Kyoto. You can go to Kyoto to Nara via JR or via Keihan. You can go Kyoto to Osaka via JR or Hanshin.

So, if one company offers easy pay methods and another doesn't it quickly gets the reputation and "a crappy old line" (who wants to live there, open an office there, etc...)

Trains are expected to last for decades, so this really isn't surprising. Developing a new system with the latest hardware to replace the floppy disk system would probably cost millions and might introduce bugs and security issues.