I wasn't intending on riding the TE, but after doing it end-to-end a couple of weeks ago I've come to appreciate it. I fully agree it needs full-service dining, at least one more sleeper (or a dorm/bag car), and an observation/lounge car would enhance the experience as an alternative to being tied to a room or a coach seat. I wonder if the market it serves doesn't have that "wow" factor so it's treated more like essential transportation vs. an experience such as the SWC or CZ.
I don't feel it's as bad as I was expecting based on previous reports. Staff were at least average, and we were able to eat in the cafe car for all meals - though seating arrangements were highly dependent on who was working the cafe car. The meals themselves weren't bad if you think of them as first-class domestic airline quality. Not great compared to a dining car, and you were aware it was a downgrade, but they were good enough to work.
If anything, I would like to see Texas get its act together with in-state rail. I was shocked at how many people were boarding in Austin for a once-daily train that took hours to get to Dallas/Ft. Worth. I think there's an untapped market for more frequent and higher-speed rail in Texas. I don't expect that to happen in my lifetime though. If it did happen I can see the TE either becoming more popular due to increased rail travel demand, or less popular because the popular segments are fulfilled using daytime coach trains.
Would I take the TE again? If it worked for my itinerary I'd consider it. Would not necessarily be my first choice though.