"And my thinking is it would be a bigger waste of the diners if Amtrak goes under because of lack of funds and/or because they did not meet the mandate to get rid of F&B losses."
That would be true if that were the only alternative, but I think it's debatable that the present course is one that is likely to "save" Amtrak.
If what several others have posted is accurate, it does not address the largest cost factor (employees/wages), and the inner workings re food revenue aren't good on paper. Add to that the dissatisfaction of passengers with the skimpy food and the wastefulness (more importantly at this point, the appearance of it) of the poor utilization of the new equipment. All the little parts added together just don't seem to be a good solution. Not that I'm an expert on running a railroad, LOL. I'll leave that to you folks.
It just seems there should be a better way, now that Amtrak is getting much better equipment, and I guess that was my underlying point.
Edit (to mostly agree with new posts seen later): Yes, I said that at present it only affects two (correction, one) train. As has been pointed out by others, though, there seems to be a trend to do away with full dining service. Other trains have already been affected. I hope it stops with the two trains discussed in this thread and the remaining trains with full dining cars and service stay that way.
As for "under utilization," I totally agree. That's why I said "kitchens sit unused," "better utilized," and "better used." I understand the cars would still be in the consists, only used as sleeper lounges. The not-inexpensive kitchen sections wouldn't be utilized, though.
I admittedly hate to see the full dining service go on any trains. It's such a nice (and, imo, needed) part of LD train travel. That said, I do still hope a better business solution can be found.