I've been on it up to Bury and realised that the signals were old railway infrastructure.
They are railway-type colour lights signals but were installed new on the off-street sections on conversion to Metrolink Phase 1. Most of this network now runs on line of sight with white bar signals at junctions, but the railway signals are still in use the extremities of the Bury and Altrincham routes. These sections will go over to line of sight at some stage, but the Altrincham end is controlled by Network Rail so is much more complicated to change.
As suggested, tram wheel flanges are shallower and thinner than those of trains, so they only need a fairly small groove on street track. This means that trains would derail if they ran on any of today's street tramways, although as suggested Glasgow and a few others had a narrower track gauge that allowed wagons to run on their flange tips.
It also means that a tram would probably derail on a normal set of railway points. This is because the wheel is prevented from going the wrong way at a crossing by the back of the opposite wheel flange coming into contact with the check rail. As the flanges are thinner on trams this would not work. For anyone into model railways, this is also the reason "fine scale" wheels won't run over "coarse scale" points!
Metrolink trams and the Rotherham tram-train have a special wheel with a tread and flange similar to a tram wheel, so it fits on street track. However the inner part of the wheel above the top of the running rail is thicker at the back, so it can engage with a raised check rail and prevent derailment on heavy rail points. This is why the check rails are raised on the off-street parts of Metrolink and will be on all the points used by tram-trains on Network Rail in Rotherham.