I don't think this is true in Europe. Certainly in the UK, passenger rail volume since the 2010s has set records higher than in any previous years, exceeding numbers that were last seen before WW2. Today there are fewer miles of track than there were in that era, but modern signalling technology allows more trains to operate safely on the same tracks, and modern trains run much faster on average.
As for freight, the US actually moves a significantly greater portion of its freight by rail than Europe does. Rail has around 40% modal share for freight in the US vs only 17% in Europe. One reason for this is that in Europe many lines are congested with passenger traffic, leaving few slots for freight trains to operate - except late at night.