I think that, as impractical as light rail and streetcar service seem in Asheville at present, there are ways in which the city should ease toward future needs. We have all seem cities (ALT) which invest millions into transit to fit an infastructure that was not designed to accomodate it.
They could look at Charlotte, which is doing a great job to use the planning department to encourage current development to accomodate future transit potential.
The city should look into low cost alternatives such as Bus Rapid Transit corridors, and small area planning/rezoning.
BRT lines, and deadicated bus roads, can help establish better ridership, and the infastructure they support, can more easily be converted to a light rail or trolley system in the future.
Small area plans and rezoning toward denser development at nodes around these corridors would increase the walkablity of communities and, in turn, ridership.
I have been imagining a north BRT line connecting downtown, UNCA, and possibly the north merrimon retail center. The route would use the lexington corridor downtown, head north along broadway, then cut over to merrimon through the large undeveloped area south of the university.
This area has recently been proposed as an option for development in the arena discussions. If this area is going to be developed, which is seeming more likely, a transit oriented development (oriented around a BRT with the intent of future light rail, or trolley) could bring housing options to the UNCA students, connect them to downtown, and be itself a great new walkable community.