Stonewall, I rode on the V&T about ten years ago, and at that time the line extended to from Virgina City to Gold Hill. The grade beyond that point is still clearly visible, so it would probably be possible to extend the line further without too much difficulty (as far as actual construction goes). Raising the money is another matter.
I had thought the State of Nevada had looked at issuing bonds for this, but I don't know if it ever got on the ballot or what the voters' opinions were.
It appears that that part of Nevada is not going through the rapid growth that Las vegas is, so it would probably be easier to get the rights to build the line again without impacting too much development.
For what it's worth, you can also see some of the old grade in the hills adjacent to US 395 south of Carson City, but that area does have new development/golf courses.
MPalmer