True, Walt Disney would approve of a steam locomotive (as they were a big part of his life), but this was already tried at Fort Wilderness and ended-up being removed, some time ago...
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One of the many reasons that the trains were removed was that they did not have the tractive effort to pull the fully loaded cars. This was also in Michael Broggies book, that the trains were too small, and did not carry enough water and fuel for the day. The operators, were from attractions, instead of being trained as train operators, (There is a difference) and the trains were always running out of water or fuel. Plus the tracks were never laid properly, and they had a lot of problems with the trains derailing. Finally someone said enough is enough and the trains were removed. For a long time, the engines were in the back of the World,under tarps. I recently learned that 2 of them were bought and are being rehabbed for a museum out west somewhere. NOt sure where the other 2 are.The cars were turned into the first ticket booths at DTD, and have been replaced with prefabed structures.