"Lionel’s inaccurate sound costs you several hundred dollars more than the MTH. "
I don't know if your complaint about Lionel's sounds generally being less prototypically accurate than MTH's has merit. I also don't care, but that's a separate issue. Lionel makes toy trains, not scale models. They run on three rails (!) and have totally out of scale features such as the couplers. Oh by the way, this is true of MTH as well. Those who like three rail trains don't much mind either feature, for a variety of reasons. As suggested above, it would seem to me you would be better served by 2 rail O gauge where prototypical features are the priority. Three rail is clearly toy, no matter how exquisite the detail. Probably always will be.
Despite your claims about Lionel's failures, for whatever reason, Lionel sets outsell MTH by about 1,000 to 1 (making this up--it's probably not quite so extreme). Lionel overall, is a small company, but does about 2-4 times the annual revenue as MTH, I'd give a wild guess. They must be doing something right, even if it doesn't please the most ardent rivet counters amongst the community. Prototypical sounds are not the most important thing to most three railers, particularly those running multiple locomotives, since the result is cacophony.
Mr. Muffin, an MTH-centric dealer, recently had four kids win sets as part of a Christmas Santa coloring competition. All four kids picked Lionel sets. Go figure. Despite being surrounded by purple boxes .
I do know for certain that your statement that Lionel costs several hundred dollars more than MTH for diesel locomotives is nonsense. Mr. Muffin sells a lot of Lionel and even more MTH, but they may favor the latter, from what I can see. Great dealer by the way. Their price, for example, for the Lionel SD70ACE is $530 and for the MTH version $440. Lionel is more expensive, but by $90, not several hundreds of dollars. From a personal standpoint, I'm happy to pay $90 more to have Legacy/Bluetooth rather than PS3/DCC. In my experience the Lionel system is superior in reliability, ease of use and sound quality (Legacy vs. DCS). Your mileage may vary, but let's try to get the facts right .