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This is the most plausible and interesting interpretation I've heard yet.
If it's any kind of open track, it'll have problems with sonic booms. 400 miles in 30 minutes is 800 mph, a speed which exceeds the speed of sound at sea-level (~ 760mph). The neighbors aren't going to like that.
Supersonic vehicles have been designed that minimize the size of the sonic boom. For example, the Lockheed Martin SAI produces a sonic boom 1% as big as the Concorde (http://en.wikipedia.org/wiki/SAI_Quiet_Supersonic_Transport).
Hmm. Maybe it won't be a problem after all. The size of the sonic boom seems to correlate positively with the size of the wing surface. Since a track (or tube) based system wouldn't need much of a wing, it ought to have a pretty small boom.

However, I do want to point out that rifle shots are supersonic and are annoying to the neighbors, and they have no wings at all.

I'm pretty sure a subsonic rifle shot is still pretty loud. :)
A friend has a rifle in 300 AAC Blackout. Subsonic ammo is far quieter than supersonic -- but you'd still want hearing protection. With a suppressor attached, it's quieter still -- you can fire it without wearing earplugs. But it's not "Hollywood quiet" - that's a movie myth.
We'll have to wait and see, but what I read was definitely plausible and sound. Intriguing indeed.
The real issue is the safety issue. Shutting down a vehicle moving at 2500 feet/sec without subjecting the occupants to unhealthy G-forces is going to be rather difficult. But who knows, the human body can certainly withstand some pretty intense shock: http://www.youtube.com/watch?v=s4tuvOer_GI