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Yes, this looks much better. My other thought would be road-rail buses, but getting on/off the tracks might be too much work to be worth the extra flexibility.
I’ve seen one of those in Japan. Even they admit that the only reason they continue to run it is for the novelty factor, it’s apparently quite expensive to keep going and not really that efficient.
It takes a good while to convert between the two modes since you have to be really careful you don’t misalign the thing and result in a derail. So it’s done, very, very, slowly.