Really? Rail fares keep rising yet people keep paying and passenger numbers keep growing...
While you could argue that someone could give up smoking or drinking, thus avoiding the hefty charges/duty, people can't so easily give up travel. The majority of it is probably not leisure travel, even at off-peak times.
If you have a job somewhere and the cost keeps going up to get there, do you quit your job? Do you seek work locally? IS there work locally?
In this new world where we all have friends and family all over the country/world, do we want to stop travelling to see them? No, and if people think rail fares are bad, wait until flying becomes totally unaffordable for many.
In mainland Europe, it's common to work in another country, so could we ever go back to working in our home town/village? Will employers ever learn to trust employees to work from home (those who are fortunate enough to have a job that would actually 'work' from home)?
No, just like increasing petrol duty, people will just have to cut back on other things and keep paying. And everyone knows this, which is why we can get such large price hikes.
Businesses/staff that can't buy advance tickets (as plans can and do change) might be able to pay the extortionate walk on fares, but don't these charges ultimately get passed on to someone else?
Therefore, why shouldn't fares be subsidised? Why shouldn't the Government realise that they're clearly getting a lot of people out of cars, and therefore overcrowding is a good thing - and justifies more spending, either on longer platforms, new lines, better signalling to allow trains to run closer together or whatever.