Paitoo
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This speed on land surface is good for military operations.... 350 Km per hour speed is more than enough for civilian purpose not to mention we have passenger jets too...
I suspect when they say 350 (or even 600), those are max speeds and not average speed of the journey. Accounting for halts, accelerations / deceleration the average speed will be much lower. Hence to achieve 350 you might have to aim for around 500.
Flights are not mass movers like trains. Moreover the time to-and-fro to airports, waiting time, taxiing time etc all add up and flights are not that fast on shorter routes compared to these trains.
If one can achieve low operating costs with these trains, they may actually lead to decongestion in cities. Currently high speed trains are expensive and not affordable for daily commute. Constantly pushing the boundaries in terms of speed will mean than comparatively slower trains like 350 km per hour may become the cheaper mass option. Bangalore - Chennai is 350 kms. Imagine covering that in 1 hour at affordable cost. And if you reside say some place like Vellore you can do it in minutes. Think of what it will do the chaos in Bangalore.
When air travel started it was very expensive and engines were fuel guzzling. Now they are more efficient and air travel is cheaper than ever. So many can afford it. This happened because engineers were always pushing the boundaries.