In Czechia, competition was a huge boon for the railways. I still remember the rusty, hopelessly dirty Communist trains with fake leather seats that glued your buttocks with sweat, "open hole" toilets that stank to high heaven in summer and froze your ass off in the winter. Nowadays, we usually ride in nice and clean trains, and on the main lines of some operators, there is a delivery service where you can order small snacks or even warm meals to your seat and get them. Compared to the past, it is a freaking luxury.
Maybe the problem that you described is German-specific. Over my lifetime, as I visited Germany, I noticed a steady drift towards lower quality in almost all public services, not just trains. As if the German voters just somehow stopped to demand or value quality of governance. IDK why, but it can be seen everywhere. And there is already a visible contrast in public cleanliness and order when you travel, say, from Zurich to Munich. Germany looks like a has-been.
That wasn't the case in the 90s. Back then, the difference between BRD and Schweiz was negligible.
My pet theory is that Merkel's 16 years of sleepy rule was too much. Most politicians need to fear replacement in order to do something. If the nation votes for the same person over and over again, there will be no real political competition.
But IDK how that works on the Länder level.
Absolutely the same change happened in Russia over the past 30 years or so, but it had nothing to do with privatisation or competition, all trains are still operated by the same state-owned corporation.