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Hi Javis,
I don´t know where you heard this, but it´s not correct. You may use as many industries as you like on any map, independent of size and number of cities.
Circular lines or A-B-C-D-E etc types of lines are always more profitable. You can also go to extremes, just check out this: https://www.youtube.com/watch?v=410SR0BoPpA&feature=youtu.be
Passengers have a clear set of destinations. When you click on a person you can see where he lives, works, shops and goes for recreation. All these destinations can in theory be reached within 20 minutes by the existing means of transport. The faster your trains or busses are, the further he can get, and over time will readjust his destinations. In case that you are unable to deliver him to the requested location within the 20 min, he will “disappear”, which means he will be beamed back to his home from where he will start another journey.
Well, it´s not that new for Europe either. The Badner Bahn connecting Vienna with Baden has been in service since 1886 and is still running today. In Vienna, the trains use the tramway lines from the Opera in the city center for about 4 km, then they run on train tracks for more than 20 km just to enter the town of Baden on tramway tracks again. Therefore late 19th century would work for Europe as well.
I`ve also just finished a hard game in 2000, and it worked pretty well, used almost exclusively trains and reached more than 500 mio on my account in the end. Regarding your questions:
1. In the inner city transport it´s almost impossible to have profits for busses and trams in the late game in the hard modus. I used as few lines as possible, some towns I left without public transport, anyway they all remained quite small in comparison with games I played before, and distances were short, so people could walk
2. Usually I prefer intersecting loops, that I serve in both directions
3. Not too close. I leave quite a large distance from the train station for the first bus/tram stop, and my loop-lines usually have 5-8 stations, using maybe 5-6 vehicles to reach a 60-second (or shorter) frequency
4. Placing trains stations close to residential areas makes sense, since people always go home before/after each other activity, therefore the residential areas do have the highest activity. Nonetheless, when travel by train to the next town does not take more than 5-6 minutes, I sometimes place the train stations on the part of town opposite to the residential area, and provide a high frequency inner city transport. People will start using the inner city transport in large numbers, and given the longer distances these might become profitable again (which might be a tip for question 1. as well)
5. It`s much better to have long lines serving several towns. I just started a game where one line connects 6 towns with ten trains, and in 1880 I already have 200+ persons waiting at some of the stations (with towns having 600-800 inhabitants). My problem now is that train engines are too weak to make trains long enough to meet demand
