You must expand stations manually (demolish the old one and build a new one). Demolishing buildings for expansion is costly, so you have think about where you are placing it if you plan to expand it.
This has been one of the major points that have to be improved, this has already been mentioned at Beta testing. As far as I know it has been noted by Urban.
Removing and placing a bigger station can be a challenge, but it is doable. Make sure you pause the game when you are doing this to avoid stuck trains or other problems.
Meh. In real life, you first have to demolish the existing structures as well before building a new one, and usually you also have to relay some rail track and the like. I think it’s fine the way it works now.
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