Hey Arnold,
My apologies--in the interest of brevity I didn't go into too much detail on those ideas. In a nutshell:
Virtual Modules in a Physical Layout:
Imagine a 4x8 mid-way through scenery construction. Track is laid, perhaps ballasted, and maybe a few buildings and landscaping. Now, imagine holding up your phone or tablet as if you were going to take a picture, but instead of seeing just the layout on your device screen, you see photorealistic buildings nested into your physical scenery, completing your cityscape or Main Street diorama, and you can move and swap different buildings out, changing features, walking around your layout in the real world out to see what works best before you make your purchase. Or, you can test drive the latest Vision Line steamer on your actual track, complete with on-screen Legacy Controls on your layout, completely virtually, standing in front of your 4x8. Or, you're setting up a special occasion temporary layout for the kids or grandkids and you want to take them out of this world. Set up a circle of track and use your phone to transport the train and the track onto an alien planet. You're running the train in the real world, but if you look on the device, the train appears to be running on Mars, or in a jungle, you name it. Imagine kids competing to design the craziest, awesomest landscapes for their train to run through virtually, and then when they're older, they can try making them for real as they get into the hobby.
In short, AR gives someone the opportunity to take objects from the real world and place them in a virtual world. Or, vice versa: take the real world and insert virtual objects into it. If you'd like to see what I'm talking about in action, click here. AR is going to become more and more part of everyday life over the next decade, and it's in our hobby's best interest to get on the bandwagon early and to capitalize.
WAN party operating sessions:
After posting, I realized I made a typo--I should have said WAN party. LAN stands for Local Area Network (ie the Wi-Fi in your home). WAN stands for Wide Area Network (ie connectivity to other devices on the internet).
There are a ton of ways to spin this for model railroads. Here are three off the top of my head.
1). The idea here is pretty simple; it's like a game of Correspondence Chess, except it's not turn-based, and it all happens real-time. Imagine that you're interested in having an operating session, but rather than have your friend over to share your layout, you want to mix it up and combine your layout and his layout. Now, in a utopia, you'd pack up one of the layouts, bring it over to the other house, and bolt it onto the other layout. Short of a modular club, that's not realistic for semi-permanent in-home layouts, obviously. That's where a WAN party comes in. WAN parties and LAN parties are a popular way for video and computer gamers to compete against each other, or to work cooperatively against a common enemy. Imagine you and a friend both fire up your favorite game at each of your homes, connect to each other over the internet, and begin playing as if you were both sitting in front of the TV or computer in the same room. You can talk, you can interact through the game, and you can team up completely virtually. This is the same idea, but for train layouts.
Imagine if your TIU or Legacy system was able to talk to other systems over the internet. And imagine if you could designate parts of your layout to act as "portals" to the other layout. Now, imagine you wanted to have a train order operating session where goods and passengers have to be delivered across railroads. And imagine that all of this could be controlled through your tablet or smartphone.
Let's say you need to get a unit train of grain from your layout's farm over to the flour mill on your friend's layout. You put your consist together on your layout. Both you and your friend's phones and tablets are aware of the consist. You begin moving the train. Your friend can see it virtually on his device. The train gets to the portal track on your layout and ideally heads into a tunnel where, in the real world, it stops. But on your friend's layout it emerges from the tunnel virtually, completely life-like and realistic. and using Augmented Reality, you and he can control it as the virtual train moves through the real layout, until gets to the flour mill to deliver the load. The virtual train is controlled using the same Legacy/DCS/whatever the future brings system controls as a real train.
2). Virtual control. I'm sure a lot of us have watched live broadcasts of model railroads. Eric Siegel's running one today on YouTube, in fact. Now, if the layout owner so desires, imagine being able to act as a remote dispatcher using your own Legacy remote or TIU Remote, or just by using your phone or tablet. Imagine being able to be one of 5 engineers operating one of 5 trains on that remote layout. Imagine participating in an operating session virtually alongside guys who are there physically. And imagine being able to do it using the same controls you use to operate your own layout.
3). Fantasy Trains. Let's say Lionel's never going to put out that fallen flag in the unit that you want. Or, you never got that MTH model pre-ordered and so sad, so sorry. What if you could download, or better yet, build your own virtual engine, entire train? I'm sure a lot of us have seen the popular ultra-realistic and detailed train simulators on the market . What if Lionel (or anyone, really) licensed that modeling technology and released a version of Legacy or DCS that could run those trains virtually, using AR, on your layout? You could build your trains from the ground up using the same tools as in the simulator software, and then virtually run them on your actual track using AR.
The concern here is that with MTH gone, one may very reasonably argue that ideas like what I've outlined above are less likely to happen because the element of competition has significantly diminished. At the same time, one would hope that a company like Lionel sees this as a time to double down for a long term future.
All of this is do-able using technology from 2017 (much earlier if you forego AR technology and just use on-screen visuals), and here we are in 2020. These are the sorts of things that would attract the younger crowd, and I suspect seasoned hobbyists would go nuts for it, too. If designed well, it would be turnkey to get going on a home layout. You are spot on when you say, If You Build it, They Will Come. Someone just needs to build it and take the financial risk. The payoff is a whole new generation or two of hobbyists that would otherwise go to another hobby.
Rafi