To a point. But there are step changes in demand at certain thresholds. Notably at travel times where rail is competitive with air door-to-door. The proposed 3 hr trip on Toronto-Montreal is a deliberate timing. If you start at Union and time what it would take to shuttle to the Island, pre-board, fly to Montreal, de-board and then take the REM downtown it works out to about 3 hrs. When it was HFR, the proposed travel time for this trip was 5 hrs, albeit with much higher reliability.
And that's exactly why they actually struggled to get bids from those large international rail companies. They don't see the point of building high frequency rail for a 500 km trip. This is the sweet spot for HSR.
The other problem is that once they decided they couldn't work with freight rail and once they found out how unusable that old corridor parallel to Hwy 7 was, well then, might as well spend the bucks.
This is what is interesting about the current process. The government demanded multiple bids, both HSR and HFR from each consortium. And asked for basic economic assessments on best return, lowest government investment, etc. We don't know what the other bids were. But they picked this one to develop for a reason. And even with this one, they will be able to descope as they proceed with design.
Lastly, on comparing to Germany, they are among the worst in continental Europe. Their HSR network is substantially hampered by regularly merging in to regular intercity and suburban rail networks. Nobody actually building something new should or would follow that example. Then again, we have a long tradition in Canada of comparing ourselves to the D student in the class, irrespective of the subject. So.....