I have not read all the replies but wouldn't be possible to use a modified 2-rail switch to run the cars? Also how hard is it to convert a 3-rail engine to 2-rail?
The electricity is the problem, 2 rails have one positive the other negative so everything about the locomotive has to be isolated so a short circuit doesn't develop.
This means that all metal wheels and attaching gear drives or in the case of steam the side rods as well need one side at least to be electrically isolated. This means from frames and axles as well as wheels and couplers.
While not impossible it is time consuming and often expensive. Each locomotive must be taken individually to where on diesels the side frames may or may not touch the wheels so isolation will depend on contact or not. At least one sides wheels need to be insulated from the axle, this can be accomplished by boring the axle hole then pressing in a plastic bushing. But getting the wheel firmly attached to the axle becomes a problem where most adhesives are not up to the task thus requiring essentially a means of keying the wheel to the insulator and the insulator to the axle.
Steam locomotives need to isolate the wheels and side rods, typically this is done by machining the hub then placing a insulator between the hub and what becomes its rimmed tire on one side. This results in a center hub wheel that is electrically isolated so then the drive rods are also isolated with only the tire in contact with the rail circuit.
The next problem is how to put the wheel of a diesel or the tire rim of a steam into a circuit that runs the motor, lights, and sounds if used. This is usually accomplished with light spring contacts made of phosphor bronze that are mounted on an insulator that is discretely 'hidden' and lightly in contact with the wheel rim/tire.
This should give you an idea why 2 rail locomotives are considerably more expensive than their 3 rail cousins. It just isn't the fineness of the detail which certainly does add cost, but the electrical systems are far more complex and costly.
Bogie