I think the short form answer to the OP's question is "Yes" -- but, more importantly, that the approach taken is, hopefully, wrong.
First: A disclaimer: I am a 2 rail, not a 3 rail person, so I have no direct interest in this Lionel product. But I have been in the hobby a long time, and I think a product similar in goal though with a different technical approach is needed.
In my opinion, the wayside devices should be purely passive -- perhaps a roll of stick-on bar codes or small "beacons" that would be placed trackside. All communications with a central station, plus the degree of onboard intelligence required, would be mounted on the locomotives or other rolling stock. This approach permits the beacons to be liberally scattered around the layout -- and it would only be necessary to upload to the locomotive any commands [ sound grade crossing horn sequence, for example ] requiring self-contained action; the locomotive would report its locations to the command post, which would then execute the routing/signal/train separation etc commands accordingly.
In my opinion the Lionel approach will be eventually be supplanted by such systems as I've described; in the meantime, Lionel does get to sell expensive hardware.
Your opinions may vary -- and that's OK. It's a hobby, and this isn't PTC.
Best rgds, SZ
