I normally don't ever respond to these far out "What If" scenario posts but I suppose this one time.
RR's got rid of steam for far more than just labor savings. All of the facilities (Coal and Water that were needed....they were high mainatance and required custome made parts and thus numerous extensive shop facilities with expensive machinery. I cant accurately speak for the effieiceny per cost of energy fuel units (coal and water vs Diesel fuel) but when one considers haveing divisions set up based on the extent a locomotivce could be expected to manage in a shift being so short, plus all of the investment in pumps, roundhouses, machines, water tanks, coaling.....it was a very inefficient way to run the railroad.
Consider extraordinary circumstances like trying to keep water supply in desolate places like the WP across Northern Nevada, also subject to extreme cold as well as drought.
They certainly were neat but they are not practical and never would be.
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