One source for more realistic figures is Mega Blox now Mega Construx. Not perfect but they articulate more than Lego Minifigs and make a good product. I built a Castle Greyskull Mega Construx kit with my youngest son over Christmas and was suprised how far they've come.
I have been thinking of crossing over into Lego trains but using 2 rail O scale track, trucks, and wheels.