I am a member of an operating crew on two N scale layouts. I agree that the engines and other equipment runs great. The engines have reliable DCC with sound. Basically they have all the bells, lights and whistles found in O scale except for the smoke and I don't run smoke anyway. The couplers are much better than the O gauge claws.
The biggest operational problem with N scale is that it is very, very hard to read the numbers on the cars and the cars tip off the track at the slightest touch. Otherwise, N scale is more reliable than O scale in either 2 or 3 rail. Just look at all the 100 car N gauge trains running at various train shows.
I wouldn't say that N scale is any cheaper than O however. Although the equipment is less expensive, most dedicated N scalers have far more locomotives and cars than the typical O gauge person just because they can. Tortoise switch machines cost the same in both scales. Ditto for most other hobby supplies.
NH Joe