I have to say, I’m not getting the feeling that Lionel are fully committed to this.
I see what you are trying to achieve, but if I were approaching it I’d go for On30. Similar size to S, lots of choice for track and rolling stock, Bachman and AMS prices and reliability and if you WANT something a bit “special”, the rare Mountain Models 2-8-2 locos and San Juan Car Co rolling stock.