They're great, compared to cars. But while they have a relatively fast and cheap setup, over the long term light rail and trams are a lot cheaper to run and can coexist with foot & bike traffic easier since the rails make them very predictable.

I'd place serious concerns on the "coexist with bike traffic" thing though. Tram rails are a massive danger if you're running anything smaller than these "fatbike" wheels and have to cross them for whatever reason.