Yes, that $1.2 million figure is too low.
As much as I'd like to see the Front Range get something akin to Utah's FrontRunner or New Mexico's RailRunner, it currently feels like it's never going to happen. The costs are astronomical, and will become worse and worse as the years go by if the pace of progress remains this slow. I think a more attainable near-term solution is to instate something similar to California's San Joaquin service, with six runs a day in each direction from Denver-Ft. Collins on the BNSF tracks. Yes, the frequency is lower, but many people in Boulder (including college students) will gladly modify their plans to take a train into Denver. I have no doubt that such a service would be very successful. Also, the powers at be in Cheyenne might get envious and work towards extending the route to WY's capitol city.
On the other hand, if the Front Range really *needs* a frequent commuter service like FrontRunner in the long-term, then maybe we just need to pay the exorbitant costs now to get it underway. Regardless, it's extremely frustrating to me that I can take a train from SLC to Provo, or ABQ to Santa Fe, but not Denver to Boulder. "That just ain't right."